Posted on: 26th Mar, 2006 09:50 pm
What are the pros and cons of each?
Hi,
The prime rate may change several times in a year or it may not change often at regular intervals. This depends on the banks when they need to raise or lower the base rate.
But the CODI is a stable index and don't fall as quickly as the other indexes.
Thanks,
Jerry
The prime rate may change several times in a year or it may not change often at regular intervals. This depends on the banks when they need to raise or lower the base rate.
But the CODI is a stable index and don't fall as quickly as the other indexes.
Thanks,
Jerry
Both CODI and WSJ Prime rate generally are very stable.
WSJ prime rate only changes when the big banks of the country decide to raise or lower the rates depending on the market.
And CODI is considered as one of the most stable Adjustable Rate Mortgages In the industry.
Zeal_Deal
WSJ prime rate only changes when the big banks of the country decide to raise or lower the rates depending on the market.
And CODI is considered as one of the most stable Adjustable Rate Mortgages In the industry.
Zeal_Deal
The CODI avg is based on the interest paid on certificates od deposit and if you think about it it's a very good index......whywould banks want to pay you more for the money in the your account so there is always downward pressure on this index. Prime is based on a margin over the fed funds rate and really is not that stable and changes when the fed chairman raises the fed funds rate.........if you look at the history of the 2 over just the last 2 years.you'll see that CODI is an vag of about 2.5% lower than prime.
