Mortgage Blog

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 index
was 0.77% on 08/09/2011. And the ARM rates are tied with
this LIBOR index. Now you know why the ARM rate trend was
actually higher.

Then why we have low 2.75% 5/1ARM rate. Actually this
is not a wholesale rate. The lender will not sell the
loan to Fannie Mae or Freedit Mac. The lender will
keep the loan. And they have the promotion recently
for loans over 417k to 2 million.