LIBOR Rates

LIBOR stands for London Interbank Offered Rate (pronounced LIE-bore).  LIBOR is a daily rate based on the interest rates at which banks lend unsecured funds to other banks in the London wholesale interbank market.

LIBOR rates are widely used as a reference rate for financial instruments such as adjustable rate mortgages

LIBOR ARM mortgages give you aggressive mortgage loan rates that are generally much lower than the typical ARM.  You are generally protected from large fluctuations in rates with both periodic and lifetime caps.

LIBOR is published by the British Bankers Association (BBA) shortly after 11:00 each day, London time.  The actual rate at which banks will lend to one another will, however, continue to vary throughout the day.