Fixed Rate Mortgage Loans
LIBOR, or the London Inter Bank Offered Rate, represents a variable market rate. In essence, this is the rate charged to London financial institutions borrowing funds from other banks. LIBOR mortgages are those whose rates adjust along with the LIBOR rate. Typically available only to the most qualified prospects, this type of loan represents a low degree of default risk, and therefore investors have no problem getting a lesser return than they would on other types of loans.
Types of LIBOR Loans
The five year LIBOR loan and the six month LIBOR loan are the two home loans with the greatest popularity.
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