Mortgage Rate Index Options
Mortgage Loan Outlet considers index options, MTA, COFI, COSI and CODI for home purchase and refinance loans with 1.25% start rates for negative amortization payment ARMís. We are dedicated to ensuring that your mortgage lending experience is a pleasurable experience. Apply now for a free, no-obligation quote on a mortgage program, and let us help you reach your financial goals today!
Every option ARM is attached to an index, which always fluctuate. Margins can be determined and fixed before closing a loan, but the index can not be fixed. They can be determined, as far as which index your loan will be tied to. Below is the list of indexes that most popular with pay option loans that feature negative amortization.
- COFI: The 11th District Cost of Funds Index reflects the average interest rate paid by the member banks and savings institutions located in Arizona, California and Nevada. Most of this index is based on savings accounts so it changes less frequently than the MTA or CODI. The COFI has long been tied to Pay Options ARM and is widely considered the most stable.
- MTA: The 12 month Treasury Average. It considers the previous twelve month values of the 1 year CMT and averages them creating a more steady index than most.
- COSI: The Cost of Savings Index is the most difficult to monitor but may in fact be the the least volatile. The COSI index is the weighted average of the interest rates paid on depository accounts held with World Savings. The index is calculated at the end of every month and then averaged with the prior twelve months creating a very stable index.
- CODI: The Cost of Deposit Index is the 12 month average of the monthly averaged yields on the nationally published three month Certificate of Deposit Rates.
We have a number of payment options loans and we would like to help you find the right lending package for your individual needs, depending on your current and future financial situation. The record low interest rates will not always be low, so you can't afford to put home buying on the back burner! A mortgage program from Mortgage Loan Outlet could be the perfect solution to your financial needs!