Discover the answer to your questions regarding home financing, billing, documentation, and more.
The Mortgage Process
What is LIBOR, and why is it being replaced by SOFR?
LIBOR is a benchmark interest rate that has been used in the mortgage industry for many years and is being discontinued. SOFR is considered a more transparent and reliable rate. We are following this recommendation from the Federal Home Financing Agency (FHFA).
How will the transition from LIBOR to SOFR impact my mortgage?
The overall impact on borrowers is expected to be minimal, as the change in benchmark rate is not expected to result in significant changes to mortgage rates.
When will the transition from LIBOR to SOFR be completed?
The transition from LIBOR to SOFR is a gradual process that is expected to be completed by June 30th, 2023.