A “LIBOR ARM” sounds vaguely related to a frozen shoulder. It’s not. Pronounced “Lee′-bore,” it stands for the “London Inter-bank Offered Rate,” a widely used benchmark (or peg) for setting mortgage rates and other debt. Meanwhile, “ARM” stands for “Adjustable Rate Mortgage.” Definition, Please What does all that mean in practice? A homeowner with a...Read More
Setting the Record Straight on ARM’s It’s easy to think that every adjustable rate mortgage (“ARM”) burned the borrowers who took them out. After all, aren’t so-called “Option ARM’s” supposed to be financial time bombs? They are, but most ARM’s don’t function that way (at least, the ones most common outside of Southern California, Arizona,...Read More
