(London Interbank Offered Rate) – Information About Upcoming Changes1

You may be hearing about changes to LIBOR. LIBOR is an index used to determine the interest rate on some adjustable rate loans. LIBOR will cease on June 30, 2023. This will affect all loans and financial products that use LIBOR to determine interest rate.

What this Means for You

Adjustable Rate Mortgage loans (ARMs) feature a fixed interest rate for a set period.  Then the interest rate periodically adjusts based on an index (third party published benchmark) and a margin (agreed upon amount added to the index to determine the interest rate).  The index and margin for your ARM were specified in the documents you signed at loan closing.  If your ARM is based on LIBOR a new published index will be assigned to your loan at your first rate adjustment after June 30, 2023.  No action is needed on your part.

1 This is provided for general information purposes only.  In our written and oral communications with you, we are not giving you any economic, tax, accounting, legal, or regulatory advice or recommendations, and are not acting in a fiduciary capacity. First County Bank shall in no event be liable to you or any third party for any direct or indirect, special, incidental or consequential damages, losses, costs or liabilities arising from or in connection with this information.  We reserve the right to amend, supplement, replace, or remove this information at any time and without notice to you.