R-010 SOFR Indexed ARM Loans & Resource docs
FLCBank is now offering SOFR (Secured Overnight Financing Rate) Indexed ARMs on 5, 7, or 10 years, then adjust every 6 months with a 1% cap at each adjustment.
SOFR ARMs, based on the latest industry-standard Secured Overnight Financing Rate, work much like traditional LIBOR ARMs, with an initial fixed-rate that’s often significantly lower than the available fixed rate. However, unlike ARMs based on the LIBOR index, SOFR ARMs adjust every six months after the initial rate expires and feature different caps at each adjustment based on the ARMs feature selected to help minimize the rate fluctuation risk for borrowers.