Why Do Bankers Get Shady?
1. Focusing on the First Two Years
2. Claim You Can Easily Refinance
3. Bad Mouth SIBOR
- SIBOR is more trustworthy than any bank’s internal rate. You can look up SIBOR rates any time, but the bank’s internal rate is private.
- SIBOR does have its up and downs; but a 10 year history demonstrates that most changes are minute, often ranging from 0.1 – 0.4 %. It will not leave you homeless overnight.
- SIBOR is less volatile than the international Swap Offer Rate (SOR). As SIBOR and SOR somewhat match each other’s movements, some bankers try to confuse the two. But SIBOR’s whipsaw motions are less drastic than SOR’s.