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LIBOR is being phased out in 2021. What now?

Mortgage lenders are preparing for the end of LIBOR, which is set to be phased out by the end of 2021. 

Financial institutions have been searching for alternatives since regulators in the United Kingdom stated that LIBOR cannot be guaranteed beyond next year. LIBOR is commonly used in setting the interest rate for many adjustable-rate consumer financial products and its end will affect adjustable and variable rate loans, reverse mortgages, credit cards, home equity loans, and adjustable-rate mortgages. 

How are lenders proceeding, then?

The most viable replacement is the Secured Overnight Financing Rate (SOFR) index, which has been recommended by the Alternative details ⇒

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