amortization
Question
I'm looking at a property that has an assumable loan. However it states: " Beginning Feb. 2011....?
"Beginning Feb. 2011, P&I payments based on monthly Libor + 104 B.P, 25 Year amortization due Jan. 2017, 1% amortization fee" I understand it all except for the "monthly Libor + 104 B.P". part. I assume it is the interest rate, but I would not know how to calculate the interest rate. Its a scary thought to add 104 to 0.25 (the 1 month Libor rate as of this posting) to come up with 104.25% interest rate on a loan! is it 1.29% ? 104 bp = 1.04%!! but MONTHLY libor is 0.25 so... is my interest: 1.29%? or 4.04%?
1 month ago - 2 answers
Best Answer
Chosen by Asker
You should contact a local mortgage broker or banker that understand the London Inter-Bank Offer Rate(LIBOR) It is not really complicated however, difficult to explain on a web site. This is a monthly adjustable that could adjust every six months, year or quarterly. I hope this has been of some benefit to you, good luck. "FIGHT ON"
1 month ago
Asker's Rating: 
Other Answers
It means the libor rate plus 104 basis points. ex: if Libor is 2% in Feb 2011, your rate will be 2 + 104 bp = 3.04%
by Mike- 1 month ago