1 Month Libor Rates

Libor, or the London Interbank Offered Rate, is the interest rate at which banks can take short-term loans from other banks in the London interbank market. Libor rates are used as the benchmark index for adjustable rate mortgages (ARMs) since these ratestend to trail the global interest rate pattern. Several Libor rate-based loan programs with the maturity period of 1 month, 6 months, 1 year, 3 years and 5 years are extremely popular. For instance, 1 month Libor rates are adjustable interest rates atwhich banks in the London money markets may borrow from other banks for a period of one month.

The 1 month Libor rates are reset daily by the British Bankers Association (BBA) on the basis of the average of interbank deposit rates taken from banks from across the world.

The loan taken on the 1 month Libor rate program carries the same interest rate throughout the month. However, if the borrower wishes to continue the loan for another month, the financial institution will renew the loan at a new 1 month Libor rate. The bankwill also adjust the payments on the loan to reflect the new interest rate.

How to Find 1 Month Libor Rates?

There are several sources from which you can find out the existing 1 month Libor rate:

• Websites: Several high-quality websites show minute-by-minute updates on the current 1 month Libor rate. Some sites allow people to become members and receive email notifications when there are changes in the Libor rates. Certain websites offer thefacility to compare lenders from across the nation. This helps people find financial institutions that are offering the best deal, based on their credit worthiness. Sites, such as BankRate.com, PrimeRate.com and Bloomberg.com, enable people to view the current 1 month LIBOR rate, apart from additional related services. BankRate.com offers interest rate comparisons for mortgage lenders, while PrimeRate.com provides historical data in addition to the Libor rates and Bloomberg.com offers comprehensivehistorical graphs of interest rate data. Moreover, all the three sites provide extensive information and links to websites of various financial institutions.
• Financial institutions: You can directly approach your banker to know the current rate. Although not all lenders use the Libor as their reference rate, the growing popularity of this index is prompting more lenders to add products based on this rate to their portfolios.