It is an index used on ARM loans that is based on the base interest rate on deposits between banks in the Eurodollar market.
The Libor (London Interbank Offered Rate) Index is the daily average of interbank offered rates for six-month U.S. dollar-denominated deposits as published in the Wall St. Journal.
An index that is used to determine interest rate changes for certain ARM plans. It represents the average rate for 6-month U.S. dollar-denominated deposits in the London market based on quotations of major banks. LIBOR is an acronym for "London Interbank Offered Rate."