Can someone explain how libor works with your mortgage?

I have a variable rate mortgage which is based on the Libor Index. I am still confused on how the mortgage company calculates my monthly payment.

For example-If today%26#039;s 1 month Libor Index is 4.8 and my margin is 2.95, is my payment based on 7.75 percent or am I missing a key component in my calcuations?

Can someone explain how libor works with your mortgage?

If they use the 1 month Libor Index then yes that is correct. For more info on adjustable rate mortgages:

http://www.regionalmortgages.com/arms.ht...