No. Aside from the index, the other terms regarding ARM rate changes will not be altered. The index will continue to adjust based on market conditions and the timelines disclosed in your note. Your margin, rounding factor, per change and lifetime caps will remain the same.
When will the new SOFR index be applicable to my loan?
Rushmore will begin using the SOFR index to calculate your new rate starting July 1, 2023, for all adjustable notes and modifications.
Can I choose an alternate index to use instead of SOFR?
No. The LIBOR Act is intended to establish a standardized process for transitioning all adjustable rate loans across all servicers to a reliable index.