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LIBOR Index Change

Starting June 30, 2023, the LIBOR index used to determine the interest rate charged for some adjustable rate loans will no longer be available. Don’t worry! We are here to help you understand and prepare for changes that will affect your adjustable-rate mortgage.

What you need to know:
  • For adjustable-rate mortgages based on the LIBOR index, a new index will be assigned at your first-rate adjustment after June 2023.
  • New adjustable-rate mortgages opened on or after December 15, 2021, no longer use the LIBOR index.

Frequently Asked Questions

What is LIBOR?

LIBOR is an index used to calculate interest rates for some adjustable-rate mortgage (ARM) loans.

Effective June 30, 2023, the London Interbank Offered Rate (LIBOR) index will be discontinued.

LIBOR has been a long-established global benchmark for interest rates. LIBOR is based on transactions that do not occur as often as they used to in previous years. Because of this, the regulators that oversee LIBOR cannot guarantee LIBOR's obtainability in the future. For more information on the discontinuation of LIBOR, please visit: The future of LIBOR

If you have an adjustable-rate mortgage (ARM) loan currently using the LIBOR index, a new index will be assigned to your loan at the first rate adjustment after June 2023.

The discontinuation of LIBOR will only impact adjustable-rate mortgage (ARM) loans currently using the LIBOR index. Please refer to your Note to determine your loan type and, if applicable, current index.

No. Any adjustable-rate mortgage (ARM) loan currently using the LIBOR index is impacted and will be transitioned to a new index.

Yes. Based on the recommendation from the Federal Reserve Board (FRB) and Alternative Reference Rates Committee (ARRC), Logix will transition to the Secured Overnight Financing Rate (SOFR) index.

As with all adjustable-rate mortgage (ARM) loans, your rate is determined by the index plus your margin. Your margin is not changing. Thus, at the time of your next scheduled adjustment after June 2023, your rate will adjust based on the SOFR index plus your margin.

Your mortgage interest rate = the index + the margin

Please refer to your Note to determine your margin.

The SOFR index will be used to determine the interest rate when your loan has its regular rate adjustment after June 2023. Until then, your interest rate will continue to be based on the LIBOR index. Please refer to your Note to determine your first or next scheduled adjustment.

No, the timing of your interest rate adjustment will not change and will continue to be based on the original adjustment term listed on your Note. If the next scheduled adjustment is prior to July 1, 2023, you will remain on LIBOR until your next adjustment. If your scheduled adjustment is after June 2023, your next adjustment will be based on the SOFR.

Your payment will continue to change, or adjust, at your scheduled adjustment period, per the terms of your Note. At the time of the adjustment, your new monthly payment will be calculated using the SOFR index plus your margin.

For example:

  • For a 10/1 ARM loan that was originated in 01/2020, the first interest rate adjustment will not occur until 01/2030. The interest rate for this loan will remain the same and will continue to be based on the LIBOR index until the loan adjusts in 2030. At the time of the adjustment, the interest rate will be calculated using the new index, SOFR, and communication will be sent with the new interest rate and payment information.
  • For a 3/1 ARM loan that was originated in 11/2021 the first interest rate adjustment will not occur until 11/2024. The interest rate for this loan will remain the same and will continue to be based on the LIBOR index until the loan adjusts in 2024. At the time of the adjustment, the interest rate will be calculated using the new index, SOFR, and communication will be sent with the new interest rate and payment information.

Please refer to your Note for more information on your scheduled payment adjustments and current margin.

Effective December 15, 2021, Logix began use of the Constant Maturity Treasury (CMT) index for all new adjustable-rate mortgage (ARM) loan originations.

If you are looking for opportunities to reduce your current monthly payment, please visit our site, contact our loan phone center or your local branch. If you are experiencing a financial hardship and would like to view loan modification options, please contact our Member Service Center at (800) 328-5328 for additional assistance.

To obtain a copy of your mortgage Note, please contact us at (866) 341-1013, Monday to Friday, from 7:00 AM to 5:00 PM (PT).

If additional assistance is needed, please contact us at (866) 341-1013, Monday to Friday, from 7:00 AM to 5:00 PM (PT).

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