COSI stands for the Cost of Savings Index. This index is the average of the interest rates on the deposit accounts of the depository institution subsidiaries of Golden West Financial Corporation (GDW). These subsidiaries all operate under the name World Savings.
Why would I want a COSI Mortgage
You can choose to index your Adjustable Rate Mortgage by COSI. Like COFI, it is a very stable ARM index, and is very popular. COSI is a “safer” way to take advantage of the changing market interest rates.
What can I use a COSI Mortgage for, and what are my options for a COSI Mortgage
A COSI Index for your ARM Mortgage is a dependable Index. Other similar indexes you might want to consider include COFI, LIBOR, CODI, and MTA.
Why should I get a COSI Mortgage
COSI is a little bit lower than COFI, although it is higher than CODI and MTA.
How can I get a COSI Mortgage
If you like what you are reading about COSI, click here and apply right now.
How can my FICO/Credit Score effect my Mortgage Rate
Your FICO and Credit Score play an important role in determining your mortgage rate. If you are between 720 and 850, you are in the A-paper range. It is very difficult to get a mortgage if you score below 660, and 620 is the cutoff between A-Paper and Sub-Prime or Non-Prime lending.
More tidbits about COSI
- COSI has a one month reporting lag and changes monthly.
- COSI rates are published in the Wall Street Journal on a daily basis.
Q: Can I have interest rate caps with my COSI?
A: Most COSIs have lifetime interest rate caps (usually at 12%), but not periodic interest rate caps, which creates the possibility of negative amortization. You can have a minimum payment change cap with your COSI, usually for up to 7.5% of the minimum payment amount.
Q: Where does a COSI mortgage come from?
A: The World Savings receives money as consumers make deposits. They lend money in the form of loans (home or otherwise). The interest rates on the deposits made are the basis for the COSI Index. It is not based on the actual interest paid, but a weighted average of all interest rates in effect on those accounts on the last day of each month.
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