What is the 30 Year, 1 Year LIBOR ARM?
This loan product offers a low introductory rate that can adjust every year according to the one-year LIBOR index. The London Interbank Offered Rate (LIBOR) index is an average of the interest rates that major international banks charge each other to borrow U.S. dollars. Interest rate adjustments have a 2.25% margin, an annual 2% adjustment cap, and an 8% lifetime adjustment cap off the start rate.
