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Home Loans Frequently Asked Questions

Get the answers you need to common questions about your home loan

Get the answers you need to common questions about mortgages and refinancing

In June 2023, a global benchmark index rate used by banks to calculate interest rates for adjustable-rate mortgages (ARMs) and home equity lines of credit (HELOCs), known as LIBOR will be replaced. If you have an ARM, or HELOC, you could be impacted.

  • The benchmark index (LIBOR) used to calculate the monthly payment amount for certain ARMs and HELOCs will retire on June 30, 2023, and will be replaced with the USD IBOR Cash Fallbacks Index.
  • If impacted, you will receive a special letter communication specific to the new index no less than 90 days in advance of the index rate change.
  • Monthly payments will be based on the calculation of the USD IBOR Cash Fallbacks index in conjunction with existing loan terms you signed with your lender. Please note, if you are in the fixed portion of your ARM, your rate will not change at this time.
  • No other aspects of your loan terms, such as margin, rate caps, reset, or amortization period will change as a result of this transition.

If you have any questions, please call us at 800.669.6607, Monday through Friday, 8 a.m. to 9 p.m. Eastern.

  • The London Interbank Offered Rate (LIBOR) is an index used by major global banks for lending purposes.
  • An index is how variable interest rates are determined for many home lending products. Your interest rate will typically be based on an index, plus or minus a specific number of percentage points, known as the margin. While the interest rate on a loan may change due to a change in an index, the margin does not change throughout the life of a loan.
  • Certain Bank of America ARMs and HELOCs use the LIBOR index to calculate the interest rate for those loans.
  • In March 2021, the governmental entity that regulates LIBOR, United Kingdom's Financial Conduct Authority (FCA), announced that the LIBOR index would cease to exist after June 30, 2023. As a result, Bank of America will need to transition to a replacement index.
  • Bank of America is working to promote awareness of these changes with clients, take into consideration client concerns, support markets, and provide solutions to our clients. Bank of America is participating in the work of global regulators, industry working groups and trade associations aimed at supporting a smooth transition away from LIBOR current benchmarks to appropriate replacement indices. For additional information visit Global Benchmark Reform.
  • Certain ARMs and HELOCs that use LIBOR as the index rate will use the USD IBOR Cash Fallbacks index as the replacement index, published by Refinitiv popup.
  • If your loan was impacted, Bank of America will notify you by letter or email informing you of the index change to the USD IBOR Cash Fallbacks Index.
  • You could also look at the contract, or Note, you signed with your lender when you secured your loan.
  • There is no impact to fixed-rate loans (e.g., 30-year fixed, 15-year fixed, etc.) or any Fixed-Rate Loan Option (FRLO) portion of HELOCs.
  • The USD IBOR Cash Fallbacks index will be used as the replacement index for LIBOR beginning in July 2023; however, your payment will not be impacted until your next scheduled interest rate adjustment, as defined in your Note.
  • Please note, if you are in the fixed portion of your ARM, your rate will not change at this time.
  • Monthly payments will be based on the calculation of the USD IBOR Cash Fallbacks index in conjunction with your existing loan terms from your contract, or Note. Please keep in mind a range of market factors beyond the LIBOR transition may impact your payment amount. Any payment change will reflect current market conditions, and the interest rate (and therefore the payment amount) can increase or decrease whenever you have a scheduled interest rate adjustment, regardless of the index that is used.
  • No other aspects of your loan terms, such as margin, rate caps, reset, or amortization period will change as a result of this transition.
  • All interest rate changes will be handled as stated on your Note.
  • You will continue to receive monthly statements outlining your monthly payment amount.
  • As with any periodic reset of your monthly payment amount, you need to confirm your automatic payments are set up correctly. If you have automatic payments set up through PayPlan, then your payment will automatically adjust. If you have recurring payments set up through your financial institution, you may need to adjust those based on the revised amounts.

If I have an ARM that is impacted:

  • Many ARMs reset their interest rate by “looking back” to the index in effect at an earlier date (e.g., 15, 45, 60 days). The Interest rate resets looking back to a date prior to 6/30/2023 will still be based on the LIBOR index; and those looking back to a date post 6/30/2023 will be based on the new index rate, the USD IBOR Cash Fallbacks index.
  • If you are in your adjustable-rate period, you will continue to receive rate change notifications approximately 60 or 25 days prior to the new payment amount becoming effective.
  • 60 days prior to the payment change date for lookback days 45 days or greater
  • 25 days prior to the payment change date for lookback days less than 45 days

If I have a HELOC that is impacted:

  • LIBOR will no longer be used in setting the interest rate for home equity line of credit products. LIBOR is expected to cease or become non-representative immediately after June 30, 2023. While the USD IBOR Cash Fallbacks index will be used beginning in July 2023, your payment will not be impacted until your next monthly HELOC rate calculation as defined in your contract, or Note.

Get answers to common questions about home equity lines of credit.

In June 2023, a global benchmark index rate used by banks to calculate interest rates for adjustable-rate mortgages (ARMs) and home equity lines of credit (HELOCs), known as LIBOR will be replaced. If you have an ARM, or HELOC, you could be impacted.

  • The benchmark index (LIBOR) used to calculate the monthly payment amount for certain ARMs and HELOCs will retire on June 30, 2023, and will be replaced with the USD IBOR Cash Fallbacks Index.
  • If impacted, you will receive a special letter communication specific to the new index no less than 90 days in advance of the index rate change.
  • Monthly payments will be based on the calculation of the USD IBOR Cash Fallbacks index in conjunction with existing loan terms you signed with your lender. Please note, if you are in the fixed portion of your ARM, your rate will not change at this time.
  • No other aspects of your loan terms, such as margin, rate caps, reset, or amortization period will change as a result of this transition.

If you have any questions, please call us at 800.669.6607, Monday through Friday, 8 a.m. to 9 p.m. Eastern.

  • The London Interbank Offered Rate (LIBOR) is an index used by major global banks for lending purposes.
  • An index is how variable interest rates are determined for many home lending products. Your interest rate will typically be based on an index, plus or minus a specific number of percentage points, known as the margin. While the interest rate on a loan may change due to a change in an index, the margin does not change throughout the life of a loan.
  • Certain Bank of America ARMs and HELOCs use the LIBOR index to calculate the interest rate for those loans.
  • In March 2021, the governmental entity that regulates LIBOR, United Kingdom's Financial Conduct Authority (FCA), announced that the LIBOR index would cease to exist after June 30, 2023. As a result, Bank of America will need to transition to a replacement index.
  • Bank of America is working to promote awareness of these changes with clients, take into consideration client concerns, support markets, and provide solutions to our clients. Bank of America is participating in the work of global regulators, industry working groups and trade associations aimed at supporting a smooth transition away from LIBOR current benchmarks to appropriate replacement indices. For additional information visit Global Benchmark Reform.
  • Certain ARMs and HELOCs that use LIBOR as the index rate will use the USD IBOR Cash Fallbacks index as the replacement index, published by Refinitiv popup.
  • If your loan was impacted, Bank of America will notify you by letter or email informing you of the index change to the USD IBOR Cash Fallbacks Index.
  • You could also look at the contract, or Note, you signed with your lender when you secured your loan.
  • There is no impact to fixed-rate loans (e.g., 30-year fixed, 15-year fixed, etc.) or any Fixed-Rate Loan Option (FRLO) portion of HELOCs.
  • The USD IBOR Cash Fallbacks index will be used as the replacement index for LIBOR beginning in July 2023; however, your payment will not be impacted until your next scheduled interest rate adjustment, as defined in your Note.
  • Please note, if you are in the fixed portion of your ARM, your rate will not change at this time.
  • Monthly payments will be based on the calculation of the USD IBOR Cash Fallbacks index in conjunction with your existing loan terms from your contract, or Note. Please keep in mind a range of market factors beyond the LIBOR transition may impact your payment amount. Any payment change will reflect current market conditions, and the interest rate (and therefore the payment amount) can increase or decrease whenever you have a scheduled interest rate adjustment, regardless of the index that is used.
  • No other aspects of your loan terms, such as margin, rate caps, reset, or amortization period will change as a result of this transition.
  • All interest rate changes will be handled as stated on your Note.
  • You will continue to receive monthly statements outlining your monthly payment amount.
  • As with any periodic reset of your monthly payment amount, you need to confirm your automatic payments are set up correctly. If you have automatic payments set up through PayPlan, then your payment will automatically adjust. If you have recurring payments set up through your financial institution, you may need to adjust those based on the revised amounts.

If I have an ARM that is impacted:

  • Many ARMs reset their interest rate by “looking back” to the index in effect at an earlier date (e.g., 15, 45, 60 days). The Interest rate resets looking back to a date prior to 6/30/2023 will still be based on the LIBOR index; and those looking back to a date post 6/30/2023 will be based on the new index rate, the USD IBOR Cash Fallbacks index.
  • If you are in your adjustable-rate period, you will continue to receive rate change notifications approximately 60 or 25 days prior to the new payment amount becoming effective.
  • 60 days prior to the payment change date for lookback days 45 days or greater
  • 25 days prior to the payment change date for lookback days less than 45 days

If I have a HELOC that is impacted:

  • LIBOR will no longer be used in setting the interest rate for home equity line of credit products. LIBOR is expected to cease or become non-representative immediately after June 30, 2023. While the USD IBOR Cash Fallbacks index will be used beginning in July 2023, your payment will not be impacted until your next monthly HELOC rate calculation as defined in your contract, or Note.
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