London Interbank Offered Rate. The rate that international banks dealing in Eurodollars charge each other for large loans.
Some domestic banks use this rate as an index for adjustable rate mortgages .


Example: European lenders offered to finance a hotel in California at the LIBOR rate plus three percentage points, adjusted monthly.

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Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.

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