Ask Experts Questions for FREE Help !
Ask
    Cathy1998's Avatar
    Cathy1998 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 23, 2009, 01:41 PM
    Calculating 6mth Libor Arm
    I was wondering how is the 6mth libor index arm calculated? I know a margin is added to the libor but my question is, how is the 6mth libor index calculated? Do they take the average of 12mths and get index?
    sandkicker's Avatar
    sandkicker Posts: 43, Reputation: 3
    Junior Member
    		  
    #2

    Jan 26, 2009, 04:29 PM

    The 6 month LIBOR is a published index. The values changes with market forces. You loan rate is some margin (value) over that index. Your mortgage note will define exactly how your rate is calculated. Usually it is the index value at some stipulated date plus the margin.
    There is one index that does represent a 12 month average (12MT) but its not based on the LIBOR
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How do you calculate interest rate using LIBOR + basis pts [ 2 Answers ]

How do you calculate interest on a one year loan of LIBOR + 50 basis points?

Libor plus bases points [ 2 Answers ]

If I was to get a $100,000,000 Loan, 3 yrs libor plus 350 basis points, what is my rate today?

LIBOR and Interest Rates [ 1 Answers ]

Ok, probably a very basic question: If I borrow $100 at the 3m LIBOR rate for a period of 1 year with interest being payable quarterly, when would my interest payments be and how would they be calculated? As I understand it, if I borrow at the 3m LIBOR, at the start I would pay the 3m LIBOR...

Calculating NPV [ 1 Answers ]

Hi I am new to this site and hope that there is someone out there who can help me. I have to calcualte NPV for a project that has no specific inflows and I don't know where to start, any help will be appreciated. Regards Sian:

View more questions Search