This table shows LIBOR rates are down significantly from a year ago. LIBOR is important to people with mortgages because some banks use LIBOR in setting rates for adjustable-rate mortgage (ARM) loans.
| Updated 7/8/2009 from bankrate.com | This week | Month ago | Year ago |
| 1 Month LIBOR Rate | 0.30 | 0.32 | 2.46 |
| 3 Month LIBOR Rate | 0.54 | 0.65 | 2.79 |
| 6 Month LIBOR Rate | 1.02 | 1.27 | 3.10 |
| 1 Year LIBOR Rate | 1.53 | 1.60 | 3.29 |
See Libor Rates at a Glance for current rates and graphs.
Lenders typically add one to three points to the LIBOR rate to cover their expenses and generate their profits.
For example, if you have a an ARM that adjustes once a year to "1-year LIBOR plus 2.25%" then your new rate will be (1.53% + 2.25%) 3.75% for the next year.
Lenders typically add one to three points to the LIBOR rate to cover their expenses and generate their profits.
For example, if you have a an ARM that adjustes once a year to "1-year LIBOR plus 2.25%" then your new rate will be (1.53% + 2.25%) 3.75% for the next year.
Definition: LIBOR is the London Interbank Offered Rate. It is a daily reference rate based on the interest rates banks in the London wholesale money market (or interbank market) offer to lend unsecured funds to each other. LIBOR is usually slightly higher than the London Interbank Bid Rate (LIBID). LIBID is the rate the same banks are prepared to accept deposits.
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