I have a 5/1 ARM tied to the libor index, but my statement says index: 1 yr libor (75). Whats the (75)?

Question

My margin is 2.875% I'm just trying to figure out how my rate will be calculated (and how often) when my 5 years is up if I don't refi. I'm thinking the (75) is either 75% of the libor rate or -.75 points.

Answer 1

The 1 Year LIBOR Rate is 3.26%

You are paying about 88 percent of that, so thats likely not it.

You might have to call your lender to solve this mystery.