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The Most Common ARM Indexes
Question: What are the most common ARM indexes?
Answer: The six-month and one-year T-Bill are generally seen as benchmark indexes. They tend to go up and down with some speed as they reflect movements in the financial marketplace. The LIBOR (the London Interbank Offering Rate) is based in London and it has
paralleled treasury securities. That said, if you want something that
parallels treasury securities, why not use the 6-month T-bill index? The 11th District Cost of Funds index is used nationwide even though it
reflects lender borrowing costs in California, Arizona, and Nevada. It is an
excellent index, slow to rise and slow to fall.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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