Cost of Savings Index

COSI MORTGAGE CALCULATOR - Shows all available Cost of Savings Index Mortgage Options. Details payment options. Great tool to better understand the COSI mortgage. Current Rates.
CURRENT MORTGAGE INDEX TRENDS: Index comparisons between MTA, LIBOR, CODI, LIBOR. Must View!
COSI VS. COMPETITION: Compares the minimum payment options from the other competitor's option arms

The Cost of Savings Index mortgage allows a borrower to have more flexibility and control over finances. This COSI mortgage allows the borrower to make one of four payments each month.

This loan can be used for a purchase or a COSI refinance. This unique home loan is based on the most stable lending index in America, the COSI (cost of savings index, historical data). The Margin is the only variable aspect of this adjustable rate mortgage. This is why the index so important. The COSI index has remained low and stable because, it is not based on the fluctuating economy. The COSI index represents the average of interest rates certain banks pay to common customers on checking, savings and CD accounts.

The COSI Index consists mainly upon yields of bank's CDs in the 11th District. Hence, the PRIME rate really doesn't affect the Index. These loans are extremely stable because the Credit Unions and Banks have NOT dramatically increased the interest rates on what they pay back to the consumer on checking, savings, money market accounts and C/D's.

The COSI (Cost of Savings Index) Loan offers you the most flexibility when qualifying for a loan, putting you in control of your finances when you start making payments. Manage your money the way you want with up to four payment options each month: Minimum Payment, Interest Only, Fully Indexed Payment (30 Year standard payment), or Equity Building (15 year payment).

The COSI mortgage is very popular for investment properties largely because of the flexible payment options. If a lessor does not pay his/her rent, the property owner is still responsible for the mortgage. This is a perfect time to make a low minimum payment or an interest only payment to stay in good standing with the mortgage. For investment properties the down payment must be 25% for a purchase. For an investment COSI refinance, you need to have at least 25% equity (or a 75% loan-to-value ratio).

DETAILS OF COSI MORTGAGE PAYMENT OPTIONS

YOUR MONTHLY PAYMENT OPTIONS:
Rates example based on $200,000

Each month, you will receive an easy-to-read loan statement that lets YOU CHOOSE the payment amount that best suits your current financial needs. Pay the minimum to free up funds for other uses, or make larger payments for faster equity build-up.

Choose this option to let you keep more cash now and keep monthly payments manageable. Generally, this payment changes annually and is calculated using the initial interest rate "Start Rate" for the first 12 months. After that, the minimum payment is usually recalculated annually based on the outstanding principal balance, remaining loan term and prevailing interest rate. A 7.5% adjustment cap (of the previous payment, NOT interest rate) limits how much this payment can increase or decrease each year. Interest rate adjustment feature and payment change cap, and certain payment options, can result in deferred interest. For example, if your previous start rate payment was $1,000 per month, the highest it can increase would be $1,075 (per year).

Interest-only payment: Payment $811.67
Keep payments manageable while paying all your interest.

At those times when the Minimum Payment is not enough to pay the monthly interest due, you can avoid deferred interest with this option. You pay the minimum monthly payment and all additional interest accrued during the month. So you avoid deferred interest, and your payments are still manageable. Note: This option does not result in principal reduction.

Fully amortized payment: Payment $1057.80
Reduce your principal and pay off your loan on schedule.

It's calculated each month based on the prior month's interest rate, loan balance and remaining loan term. When you choose this option, you reduce your principal and pay off your loan on schedule, just like any standard loan.

If you want to build equity faster, pay off your loan quicker and save on interest, this is the option for you. It's calculated to amortize your loan based on a 15-year term from the first payment due date.

Bi-Monthly Option: Pay off your 30 Year loan in under 24 years keeping monthly payment the same.
Pay your loan off faster

Add this option to let us automatically deduct 1/2 your mortgage payment every two weeks from your checking account. This is a great way to manage your mortgage, and save thousands more by paying your loan off years faster.

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You want to minimize your house payment-smallest you can get anywhere
You want to minimize your house payment to pay off other debt.
You want to minimize your house payment to invest the difference elsewhere
You want to control the amount of tax-deductible interest you pay each month.
You want to maximize your buying power.
Your income tends to fluctuate or you're confident that your income will rise over the years

Cost of Savings Index Links

COSI Mortgage Calculator - This valuable tool will calculate the four monthly payment options tailored to you mortgage.

Cost of Savings Index

DETAILS OF COSI MORTGAGE PAYMENT OPTIONS

YOUR MONTHLY PAYMENT OPTIONS: Rates example based on $200,000

Cost of Savings Index Links

YOUR MONTHLY PAYMENT OPTIONS:
Rates example based on $200,000