COFI ARMs (Cost of Funds Index Mortgage
& COFI Index History)
COFI ARMs
COFI ARM
(Cost of Funds Index Adjustable Rate Mortgage) - the rate is normally fixed
for a 3 month period (this initial rate is sometimes referred to as the teaser
or start rate) after which your rate is based on the 11th district cost of
funds index (COFI) which is added
to a pre-determined margin
(typically ranging between 2.25-3.00%) to arrive at the new monthly rate. This
loan may also have periodic payment
caps and therefore the potential for negative amortization. Ask what the
margin, life cap and periodic caps of your ARM will be. (Also see
anatomy of an ARM for additional
information).
Fannie Mae/Freddie Mac Conforming Mortgage Rates Just One Click = Today's Rates
The cost of funds index (COFI) is not an interest rate. It
reflects the average interest paid by savings institutions for their various
sources of funds over a specified period of time. Deposits in checking and
savings accounts — including certificates of deposit, money market deposit
accounts, transaction accounts, and passbook accounts — are the primary
source of funds for most savings institutions. Other sources of funds include
loans obtained through the credit programs of the Federal Home Loan Bank of San
Francisco (known as "advances") and money borrowed from other financial
institutions.
In general, the COFI does not move up or down as rapidly
as market interest rates (such as the prime rate, the discount rate, or
Treasury bill rates) because many savings institutions rely on fixed rate
deposits of medium- and long-term maturities as a primary source of funds.
Since rates on these deposits are not affected by changing market interest
rates until the deposit matures, the total interest expense paid by savings
institutions in a particular month reflects, to a significant degree, interest
rates that were prevalent in previous months or years.
COFI History - (11th District Cost
of Funds Index)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2011
1.484
1.469
1.452
1.359
1.360
1.338
1.350
1.316
2010
1.786
1.614
1.859
1.825
1.791
1.797
1.753
1.713
1.663
1.654
1.571
1.508
2009
2.455
2.003
1.627
1.380
1.832
1.599
1.473
1.412
1.272
1.259
2.094
1.828
2008
3.970
3.560
3.280
3.111
2.918
2.829
2.698
2.693
2.769
3.125
3.155
2.757
2007
4.392
4.376
4.299
4.224
4.293
4.283
4.277
4.359
4.383
4.233
4.172
4.072
2006
3.347
3.604
3.624
3.759
3.884
4.09
4.177
4.277
4.382
4.346
4.358
4.396
2005
2.183
2.317
2.400
2.515
2.622
2.676
2.757
2.870
2.972
3.074
3.190
3.296
2004
1.811
1.841
1.815
1.802
1.708
1.758
1.816
1.875
1.931
1.960
2.025
2.118
2003
2.308
2.257
2.210
2.208
2.130
2.113
2.018
1.946
1.923
1.909
1.821
1.902
2002
2.823
2.744
2.653
2.723
2.772
2.847
2.821
2.763
2.759
2.708
2.537
2.375
2001
5.514
5.426
5.198
4.946
4.745
4.498
4.274
4.106
3.974
3.628
3.368
3.074
2000
4.901
4.967
5.002
5.078
5.196
5.357
5.456
5.509
5.548
5.589
5.607
5.617
1999
4.608
4.562
4.519
4.490
4.480
4.504
4.500
4.562
4.608
4.666
4.773
4.852
1998
4.987
4.968
4.917
4.903
4.881
4.881
4.911
4.899
4.882
4.762
4.691
4.655
1997
4.821
4.759
4.780
4.822
4.864
4.853
4.887
4.904
4.941
4.957
4.949
4.963
1996
5.033
4.975
4.874
4.841
4.823
4.809
4.819
4.839
4.834
4.839
4.835
4.842
1995
4.747
4.925
5.007
5.064
5.141
5.179
5.144
5.133
5.111
5.116
5.119
5.059
1994
3.710
3.687
3.629
3.672
3.726
3.804
3.860
3.945
4.039
4.187
4.367
4.589
1993
4.360
4.333
4.245
4.171
4.103
4.050
3.998
3.958
3.881
3.823
3.822
3.879
1992
6.002
5.800
5.611
5.427
5.290
5.258
5.069
4.874
4.805
4.597
4.508
4.432
1991
7.858
7.848
7.654
7.501
7.329
7.155
6.998
6.845
6.714
6.566
6.414
6.245
1990
8.369
8.403
8.258
8.211
8.171
8.086
8.109
8.075
8.091
8.050
8.044
7.963
1989
8.125
8.346
8.423
8.648
8.797
8.923
8.844
8.763
8.807
8.643
8.595
8.476
1988
7.615
7.647
7.509
7.519
7.497
7.618
7.593
7.659
7.847
7.828
7.914
8.022
1987
7.396
7.448
7.314
7.245
7.223
7.274
7.275
7.277
7.394
7.444
7.562
7.645
1986
8.770
8.964
8.744
8.587
8.441
8.374
8.196
8.018
7.901
7.717
7.602
7.509
1985
10.217
10.160
9.976
9.872
9.704
9.565
9.365
9.273
9.129
9.027
9.036
8.867
The Cost of Funds Index is considered by many to be
the least volatile index. Therefore the COFI ARM is often preferred by savvy
borrowers.
As mentioned above an excellent source for information on
the Eleventh District Cost of Funds Index is
Federal Home
Loan Bank of San Francisco. The monthly COFI reflects the actual interest
expenses recognized during a given month by all savings institution members of
the Federal Home Loan Bank of San Francisco (Bank).
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Source of Current COFI Index and History </a>
