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The two most popular LIBOR
home loans are the 5 year LIBOR home
loans and 6 month LIBOR home loans.
We are one of the top 5 mortgage brokers in the US offering low
mortgage rates throughout 48 states.
5 Year LIBOR Home Loans are popular
because they
allow you to fix the rate for the first five years of the mortgage. The
interest rates are incredibly low, oftentimes in the 5% range, and
there are caps on these loans so the interest rate can only increase up
to a maximum of 5% above the starting rate. A great program for the
borrower looking to minimize the monthly mortgage payment while still
securing a fixed rate on your interest and not risking negative
amortization. Also, these mortgage loans typically come without a
prepayment penalty so you can refinance later if you think the rates
may rise or your financial outlook has changed in some way.
6 Month LIBOR Home Loans are popular
because they
provide you with the ultimate in low monthly mortgage payments. Rates
on these programs are in the 2% to 3% range, and because of the
interest only feature, a monthly payment that is incredibly low. The
risk with these loans is that the rates will rise, but in most cases
you are protected by a 5% cap over the initial start rate, so if you
start at 2.5% then the worst case scenario is 7.5%, and
that’s
not so different than the 30 year fixed rates in the 6% range.
Especially once you take into account the monthly savings accumulated
with interest over an extended time period. All in all, it’s
a
good loan for the long or short term holder willing and able to take
the risk of a changing monthly payment. This loan requires good credit
and is not available to all borrowers.
Calculate your low LIBOR mortgage payment
with our interest only mortgage payment calculator!
Get a LIBOR mortgage rate quote today from Virginia
Mortgage Bankers, LLC. Virginia Mortgage Bankers, LLC is a mortgage
broker offering hundreds of loan programs from 300 mortgage lenders. Contact
us
at Virginia Mortgage Bankers, LLC, for a free mortgage evaluation and
we will show you how much you can save using our LIBOR home loan!
Or, simply use our online loan application for LIBOR
mortgage and we will get back to you same day!
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