Long term Interest rates and my mortage
Everyone talks about the fed rate cuts but my mortgage is/was based on Libor which is now something else. HUGE for me…what can I expect for a February annual rerate on my unfortunatly very large mortgage? Think I am being push out of my home after thirty years.
Terry Says
Sorry, but LIBOR has not been used in three years! Contact your mortgage servicer and find out what the index is that is used to calculate your adjustments. It is likely a version of SOFR — the U.S. Treasury Overnight Rate.
Basically, mortgage rates are based in general on the 10-year Treasury rate when fixed rate mortgages are issued. But adjustable rate mortgages are based on shorter term rates.
If your adjustable rate mortgage is very high, this might be a good time to search for a 15-yer fixed rate mortgage to see if you can afford the monthly payments. If rates drop further, you can always refinance that mortgage. That assumes you qualify for a mortgage based on your income.
One good place to shop for a mortgage rate is https://www.rate.com/
