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LETTERS

LIBOR Index Merits Another Look

January 18, 1998

Regarding the question about the LIBOR index and its stability ("Real Estate Q&A," Jan. 4) ), the more I read Robert J. Bruss' negative response, the angrier I become.

First, the LIBOR (London Interbank Offering Rate) Index has actually decreased over the last six-month period, whereas the 11th District Cost of Funds Index has increased.

But more important, the blanket "no" answer to this question about the safety of the LIBOR index is irresponsible. Other factors need to be taken into consideration before deciding on any loan program.

These homeowners indicate that their credit is not the best, which is a major factor when deciding what type of loan would best suit their individual situation as well as when deciding whether they should even be refinancing their home at all.

Maybe the LIBOR adjustable mortgage these homeowners were asking you about would have been the perfect way to get themselves out of their current financial problems, save some money and, in a year or so, refinance into a low fixed-rate mortgage and get on with their lives. Who knows? Mr. Bruss, you didn't ask enough questions.

JANALE BRANNON

Arcadia

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