The lending industry is changing the index used to determine payments for Adjustable-Rate Mortgages (ARMs).
The London Interbank Overnight Rate (LIBOR) index has been used for decades, but it is being phased out in favor of a new index called the Secured Overnight Financing Rate (SOFR).
The switch from LIBOR to SOFR is expected to have a relatively limited effect on most borrowers, but there is a chance it could impact your ARM’s monthly payment. If you have an existing ARM with us, you will receive written notification about your specific loan terms in early 2021.
Please give us a call if you have any questions:
- Existing Mortgages – 800-232-8101, ext. 5125
- New Mortgages – 888-334-5120
If you’re interested in learning more about the change from LIBOR to SOFR, keep reading for some industry information.