COSI loan

The COSI Loan (also known as the COSI Mortgage) is an adjustable payment (not rate!) loan that uses a Cost of Savings Index (COSI) of the lending bank.

The COSI index is one of many indexes that mortgage lenders use to determine rates on ARM mortgages. Other indexes are the LIBOR,MTA and COFI index. Each separate index has its own performance and history so always research the index completely before signing any loan papers.

The COSI rate is adjusted for the effects of financial instruments related to deposit accounts and other adjustments determined by Golden West in its sole discretion to accurately reflect the weighted average of interest rates on the deposit acccounts.

This index is basically reflective of the rate World Savings is paying for it deposits.

COSI index loans are primarily pick a pay negative amortization loans.

» DISCLAIMER: The information contained in this article on 'COSI loan' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.