COSI Loan-A type of ARM based on cosi index rate

Hi Baam,

I think I have seen your question here http://www.mortgagefit.com/terminology/index.html and Samantha has posted a reply against your query over there.

Kindly check over there and still if have any problem or feel that what you wanted is not answered you are always welcome to ask it again.

James

I'm planning to get into COSI loan and my loan office seems not answere'n me right. According to him... if i pay minimum payment of 2.5% (APR 6.01 %) bi-weekly for 5 years... i wont hit the deffered interest. Is this true? can someone please guide?

Hi,

Since you are making the minimum payment at a less interest rate compared to your actual APR, so I feel that you will have to pay the deferred interest later on.

Secondly if your loan office isn't answering you properly, then you should request them to help you clear your debts. Otherwise, you may again come across any problem during the course of repaying the loan.

Thanks,
Jerry.

Thank you Jerry!

Where can one find a calculator that will give better view of deferred interest, e.g. As Cosi index going up, making monthly minimum payment, adding some towords principal etc... will calculate pricipal balace at the end?

Second, Is this true that Margin Rate is different from 1 bank to another?
Is there any standards how they set this margin rate... LTV/Credit Rating or property location... it seems that loan officers are not open these types of questions?

Thanks
Manu

Hi manu,

You can find all the required calculator under the Calculator Section.

For margin rates yeah it differ from banker to banker and there no such standard for the same. But make sure you ask for all these details to your banker as they are bound to give the true picture of their working process.

Adonis

A traditional mortgage calulator does not work on a neg am loan. If you are making the min. payment the you are defering interest......but your paymentin and of itself is a PI payment so you are getting a reduction to your loan amount and the adding the defered interest back in. This can be done using an excel spread sheet but not a traditional mortgage calulator.

Your margin is going to be affected by a lot of different things including credit score and ltv. A good broker can walk you through the options.....and believe it or not you can do this loan with less than a 620 midscore but the ltv needs to be 70% or less generally speaking with a good mortgage payment history.

How to shop for lowest Margin rate... some banks are charge'n 3.5% while other 4%. Any suggestions?
Thanks

Manu

Most brokers have access too several different lenders all of which will have different margins available. I would suggest getting with a good broker and reviewing what it is that you want exactly since there are so many variables.

As a further add to the information above not all banks offer all of the index's available either. Your choices are libor,MTA,COSI,COFI,CODI.

Hello, I need help. I don't know what to do. I have called my mortgage company and tried to get help, they just send me from one person to another and no one seems to be able to help me. I cannot afford the mortgage payments, and was not sure on which way to go. I was going to foreclose and then someone told me about a bankrupt. I do not have funds to fix the house up, it is too much for me and I just want to sell it and release the burden. It has cause me to suffer health wise and no one seems to care. What would be the best way to go?

Hi,

Welcome to MortgageFit Forums.

I am sorry to hear about your misery. I can understand your agony. I know it's difficult to have patience under these conditions but still I shall advise you to stay calm. Things can worsen if you take any decisions in a hurry at this point of time.

Bankruptcy can be always an option but it should be last one to try as it will have serious impacts on your credit history.

I shall suggest you to approach the bank once again and explain your condition. See if they come up with any option. Generally lending institutions don't like a foreclosure as it takes both time and money.

You may request for a deed-in-lieu which will also affect your credit history but may have some less effect compared to a bankruptcy.

Consult a good real estate attorney to help you in the process and in taking a decision.

Don't worry, things will certainly change and you come out of this problem. My best wishes are with you.

God bless you.

For MortgageFit,
Samantha

COSI loan make a big difference only if you choose the biweekly payment and increase the payment cap 7.5 % every year until year 6. This is the only way to save a lot of money in interest and allow to pay your house in between 19 to 25 years.

Pam, the most important thing you mentioned was that you reduced Principle by 6k the first year; there is no fix rate out there that could offer that type of reduction! that is the most important thing, not your rate. Cosi Loans re-amoritize every 2 weeks (Only Bank in america), which also means you only pay interest on the current amount owed (there for putting more towards principle than interest every 2 weeks) Don't Refi, you will be sitting great in 10 years, the refi will cost you and your amortization schedule will go backwards. One last note.....the Cosi would probably have to hit over 7.5% for the fix rate @ 6% to out perform.

Hope this helps

Hi Hue,

Welcome to our forums.

Let me clarify that this is an open discussion forum where anyone can come forward and express their opinions freely. So, there can be diverse range of opinions based on different data and information gathered by different members. Anyway, this is how a Community enhances its knowledge and shares it with others.

Thanks for your suggestion. We look forward to your participation and support in future. It will help us in providing better ideas to all our guests and members.

Regards,

Jessica.

first time buyer stay 5 to 10 tears 10% down, COSI min. mounthly paymeny 4.10%, margin3.50%,cosi index3.36%fully indexed7.1% min pay 1414,intrest only 1682, 30yr 1919.00. 15yr. 2606 + about 380 on all of those for taxes and ins. 30year fixed at 6.75% is 2300 with taxes and ins. stated no doc. what ya think? thanks