What is a Libore?.

Libor, which stands for "London InterBank Offered Rate," is ultimately an adjustable mortgage rate. Libor Loan interest rates are calculated by using the current interest rate in the country. Libor Loans are often compared to the United States' 1-Year Treasury Security Index. What differs, however, is Libor offers different term periods. You can choose from a 10 year loan that is quoted for 1, 3, 6 and 12 month periods

This week 6-mos Libor is .79. But your current rate will still be around = 0.94 + the margin (common margin is 2.75%). So your rate should be 0.94+2.75=3.69. Most adjustable loans also have the floor rate so they can only go to a certain amount. For this particular example your rate could just be 4% if the floor rate is 4%. You should check your mortgage note, especially the Rider pages, in your original document that you signed at escrow. If you can't find your original one you can get it from BoA or you can also look it up online at the county recording office website. My recommendation is to check to see if you are qualify with the Obama's Mortgage Relief programs so that you can refinance to a 30 year fixed mortgage so you can have better sleep at night. To check to see if either Fannie Mae or Freddie Mac hold your mortgage you can try the links below:http://loanlookup.fanniemae.com/loanlookup/https://ww3.freddiemac.com/corporate/You would be supprise to see that you might still be qualified for a refinance even your house value has gone down a lot. Let me know if you need any help. My email is lvuong@soundmtg.com