Basically they are indexes that adjustable mortgages are based on.
These are good alternatives if you have good credit, going to live in a property for less than 3-5 years, or want the lowest possible monthly payments.
By utilizing these adjustable interest rates, you pay down the principle quicker, your payments are much lower than a fixed rate and depending on your term, can be at a fix rate for a certain amount of time.
There are 1month adjustables, 3 months adjustables, 1 year, 3 year, 5 year, 7 year and some 10 year adjustables.
Once the term of your fix rate period has ended, you mortgage adjusts to whatever index that your rate is based on plus usually a percentage point.
Basically they are indexes that adjustable mortgages are based on.
These are good alternatives if you have good credit, going to live in a property for less than 3-5 years, or want the lowest possible monthly payments.
By utilizing these adjustable interest rates, you pay down the principle quicker, your payments are much lower than a fixed rate and depending on your term, can be at a fix rate for a certain amount of time.
There are 1month adjustables, 3 months adjustables, 1 year, 3 year, 5 year, 7 year and some 10 year adjustables.
Once the term of your fix rate period has ended, you mortgage adjusts to whatever index that your rate is based on plus usually a percentage point.
good luck,
Beau[ Edited by bjsmooths on Date 10/19/2003 ]