Understand and prepare for changes to your adjustable-rate mortgage or other loans tied to the LIBOR Index.
Changes to your adjustable-rate mortgage or other loan tied to the London Interbank Offered Rate (LIBOR) index will begin in June 2023. This information is being provided to help you prepare for the transition.
The LIBOR index, used to determine the interest rate charged for some adjustable rate loans, will no longer be available after June 2023. This will affect some loans and lines of credit that use the LIBOR index to determine interest rate.
We're working with regulators and consumer advocacy organizations to move existing accounts from LIBOR to another index in a way that's fair and transparent.
Here's what this means for you:
- If your adjustable-rate mortgage is based on the LIBOR index, a new index will be assigned to your loan at your first-rate adjustment after June 2023.
- New adjustable-rate mortgages no longer use the LIBOR index. FNBT now uses the Secured Overnight Financing Rate term rates (TERM SOFR) for new loans booked.
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