January 27th, 2012 9:44 AM by Eric Fang
I do have 2.75% for 5/1ARM. But it does mean ARM rate have a trend of lower rate.
Today's 1 yr LIBOR index is 1.099%. And 1 Yera LIBOR indexwas 0.77% on 08/09/2011. And the ARM rates are tied withthis LIBOR index. Now you know why the ARM rate trend wasactually higher.
Then why we have low 2.75% 5/1ARM rate. Actually thisis not a wholesale rate. The lender will not sell theloan to Fannie Mae or Freedit Mac. The lender willkeep the loan. And they have the promotion recently for loans over 417k to 2 million.