If you are see little relief in your Adjustable Rate Mortgage after the Fed interest rate cut on September 20th your loan may be in Libor. No not limbo, LIBOR – tied to the London Interbank Offered Rate.

"If Libor doesn't come down, there is no relief" for many mortgage borrowers,” says James Bianco, president of Bianco Research LLC, a market-research firm in Chicago.

One more example of the global economy. Your home loan is no longer guaranteed to be an American product.

We get many a buyer that thinks it’s all about the interest rate – whoever is offering the lowest rate, that’s the best deal……arrrgh! Not necessarily. Prepayment penalities, payment of points, rate on reARMing, etc. may be more costly than interest rates over the term of your loan.

A great deal depends on how long you plan on owning the home. If you’re of the mindset that it’s all about the interest rate take the time to talk to at least three different Certified Mortgage Specialists.

We invite comments here from mortgage brokers on this issue.