Learn About LIBOR

LIBOR (London Interbank Offered Rate) is the rate on Eurodollars traded between banks in London. A Eurodollar is a dollar-denominated deposit in a bank in a country where the currency is not the dollar. The Eurodollar market is more than 40-years old and is a major component of the international financial markets.

LIBOR is quoted on a one-month, three-month, six-month or yearly basis. The six-month LIBOR is most commonly quoted for mortgages. Both Fannie Mae and Freddie Mac use LIBOR as an indices for loans they purchase. The LIBOR rate can be found daily in The Wall Street Journal "Money Rates" table.

Considered one of the most important barometers of the international cost of money, LIBOR has historically reflected money market rates more accurately than the prime- and Treasury-based indices.

At Merrill Lynch Credit Corporation, we use the one-month, six-month and one-year LIBOR index for our selection of competitively-priced mortgage solutions. Our clients enjoy saving potentially thousands of dollars using LIBOR-based mortgages.

Learn about our LIBOR-based Adjustable-Rate Mortgage known as PrimeFirst^®.

Learn about our LIBOR-based Interest-Only Fixed-to-Adjustable-Rate Mortgages.

Click here to view the LIBOR Charts.