|
Cost
of Savings Index (COSI) Highlights
| Every
month, borrower can elect to make
one of four monthly payments
options: |
| |
1.
Minimum Payment - Fixed 1.95%
payment. |
| |
2.
Interest Only Payment |
| |
3.
30-year payment |
| |
4.
15-year payment |
Current
Rates:
| 1.95%
Minimum Payment |
| 4.65%
30 Year Payment |
| 1.87%
Current Cost of Savings Index (COSI)
Index |
| 2.8%
- 3.4% Margin |
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, see
graph). 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).
For
More Information on the COSI Mortgage,
please click here
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.
Minimum
payment: Payment $734.00
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.
15-year
payment: $1568.07
Own your home twice as fast.
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.
--------------------------------------------------------------------------------
Consider
a COSi If:
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
|
