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Mortgage lenders normally look at the six-month and the one-year Libor for ARM loans.. And just as with ARMs, when the Libor is up, your student loan payment will be higher. When it’s down.
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LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate, which some of the world’s leading banks charge each other for short-term loans. It stands for Intercontinental Exchange London.
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See Also: libor prime lending rate interest expense interest rate Swaps Federal Funds Rate Libor versus Prime Rate. The london interbank offered rate (libor) and the US Prime Rate are both benchmark interest rates.Both rates are used as reference rates for various lending and borrowing transactions. (For current and historical rates, see the links below.)
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