Is a 6 month libor going to adjust 6 months after the fixed term expires?

Answer 1

It will adjust at the end of the fixed term.

for example, a 2 year fixed will adjust at 2 years & the new payment will be due one month later.

It will adjust every six months after that.

Answer 2

This is a schedule of adjustment. Now whether the loan actually adjust depends on which way the 6 month libor go. It can go up, down or remain the same.

Now the one thing in your favor is that this is a slow moving fun, so even if it does adjust up it is a slow adjustment, there fore your monthly payments will go up accordingly, slow.

This rate is a popular one, so you should be able to find it in your local newspaper.

If your mortgage broker explained your rate and margins you should be able to figure out in which direction the rate will go.

I hope this will be of some use to you, good luck.

"FIGHT ON"