We are not able to find this information and are new the ARM's tied to LIBOR. We know the lookback days, margin & caps but are unable to determine how often the LIBOR index must be updated. Is this a rate that would be updated weekly for use as the index? Monthly, daily?

We haven't had any luck locating anything to give us some direction. Can anyone offer any insight on where to look or what the "norm" is in the market?

Thank you.

Depends on what you want to do. Typically they are based on the 1-, 3-, 6-Month, or 1-Year LIBOR. 6 month is probably the most common that I have seen.

LIBOR is an index. Actually, it's a series of indexes that are based on the maturities of various inter-bank contracts. LIBOR changes frequently (daily, I think) and is beyond your control. The rate formulas you charge your ARM customers are totally within your control, however. It's up to you to say what index you will use as your base rate and how often you will reset the value of the base rate that will be used to calculate your ARM interest rates. It's also up to you to declare the snapshot date for the value of the index you will use to reset your base rate.

Thank you guys for your help on this!
Have a great weekend!