Posted by Mitch on March 04, 2003 at 08:19:45:
FWIW: We’ve had a loan since 1993 using COFI index, and the final APR has never been over 8.2%, yet.
Currently, 4.2% I would get another one.
Financing using CODI, COSI or COFI - Posted by iolani
Posted by iolani on February 21, 2003 at 01:20:30:
Does nayone have experience using financing thru these indexes and what was your initial margin rate when you locked in? Currently the margin rate is around 2.75% but I was wondering if the rate goes down in proportio to the indexes mentioned above. Of course I know that the margin rates don’t change during the life of the loan but I am referring to different entry points when the index is up or when the index is down.
Re: Financing using CODI, COSI or COFI - Posted by GMann
Posted by GMann on February 21, 2003 at 08:23:20:
I borrowed this from a post I answered a few days ago. Try some one of the links and it will show the past 11 year performance. In response to the index lowering, most of the margins are probably at least 2.75 so the indexes would have to be at 0 or so to go below the initial start rate. Most of the CODI,COFI,COSI arms have high end caps at 10-11%. As far as low end caps go I don’t think there are any. Happy reading…
Posted by GMann on February 11, 2003 at 23:34:00:
In Reply to: What is it with C.O.D.I loans? posted by patdon on February 11, 2003 at 16:46:43:
Try this link, it explains a CODI and if you click on the link that says “11 year comparison” you can see how the index performed.
http://www.aami.net/CODI/codi_information.htm
The way most arms (adjustable rate mortgages) work is that they have an index and a margin. The most common are the LIBOR (London Interbank Offering Rate) and Treasury. COFI, CODI, and COSI are also used as an index but are less common. The margin is the number that is added to the index to get your current mortgage rate.
The CODI, COFI and COSI arms usually have 3 payment options. Interest only, principal and interest, or a minimum payment. Some people choose the minimum payment option and it results in a negitive amortization. In other words you are adding to your principal balance instead of taking away.
The COFI, CODI and COSI arms are perfect for the larger balance loans in a market that real estate is increasing. You get the benefit of much lower payments and an increasing home value.
You just have to weigh out the positives and negs of your OWN situation. It’s a cool program if the shoe fits.
Hope this helps