Posted on: 07th Jan, 2009 10:14 am
Hi,
I have a mortgage that's based on the COSI. Right now it's holding at about 6.9%, which is very high considering the low fixed rates around now. Is the COSI projected to go down anytime soon?
Thanks
I have a mortgage that's based on the COSI. Right now it's holding at about 6.9%, which is very high considering the low fixed rates around now. Is the COSI projected to go down anytime soon?
Thanks
I do not know the value of the COSI index right now, but, I doubt that it is 6.9%. The 6.9% sounds like the sum of the COSI index plus the margin,.
Most indices are in the 1.78 to 3.125 range and 6.9% is way too high to be an index.
The COSI is the cost of funds for a particular bank, used to be World Savings. Theur cost of funds is what interest they pay on Cds and savings accounts, etc. No one is paying 6.9% on savings accounts.
That beiong said, no one knows if COSI will go up oir down. It is already so low, it could go down a little. Probably stay around where it is at and when inflation kicks in it will go up.
Most indices are in the 1.78 to 3.125 range and 6.9% is way too high to be an index.
The COSI is the cost of funds for a particular bank, used to be World Savings. Theur cost of funds is what interest they pay on Cds and savings accounts, etc. No one is paying 6.9% on savings accounts.
That beiong said, no one knows if COSI will go up oir down. It is already so low, it could go down a little. Probably stay around where it is at and when inflation kicks in it will go up.