re: Question about my 5/1 arm mortgage.

quote:

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In other words, 7-9% PLUS the London Interbank Overnight Rate (I think that's what it stands for, LOL).

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7-9% plus LIBOR. Uh...no. They're normally 2-3% plus 1 year LIBOR. In my neigbor's case, his was 1 year LIBOR plus 2.25%. The 1 yr LIBOR rate at the time of his adjustment was 0.75%. Hence the 3% interest rate for 12 months.