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

shayneroy · Joined: 12 Nov 2007 Posts: 51 21.08 Dollars($)

The last post was by me.

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World Savings was bought out by Wachovia. They now offer the product as the "PICK a Payment Plan" They indeed wanted 25% down to go stated / verfied. Unless you have an excellent score they can then go to 10% full doc...

adonis · Posted: Thu Feb 07, 2008 4:38 am Post subject:

25% down is something most borrowers may not want to pay. What score do they prefer for a 10% full doc? I suppose you've been dealing with them.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.07 Dollars($)

Hi Apriil28,

Wachovia will allow 10% down on a purchase even with stated income. They will even go up to 90% on a rate and term refinance.

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Where do I find out if I have the option of getting a fixed rate after a period of time in a cosi loan.

jveenstra · Posted: Mon Feb 09, 2009 2:42 pm Post subject: COSI Loans

COSI loans have potential negative amortization. Most borrowers do not understand negative amortization. No borrower should be doing them unless you understand them backwards and sideways and frontwards. If you are on a fixed income, do not do it. If you make way more money than is necessary for the payments, you could do one. If you are going to sell the property in a couple years, maybe do one.
If you need to do a COSI loan to qualify, do not do it. Only do it becasue you understand it to the point where you copuld sell it to me (Never happen. I've been in the business 23 years and I understand them explicitly and no one could ever sell me one. Nor would I ever sell anybody else one.)
Reagular rates are so low, why would anyone who understands potential negative amortization do a LOAN WITH POTENTIAL NEGATIVE AMORTIZATION ESPECIALLY CONSIDERING WHAT THE "EXPERTS" ARE SAYING ABOUT THE POTENTIAL FOR HIGH INFLATION IN A COUPLE YEARS

eric1 · Posted: Tue Feb 10, 2009 6:57 pm Post subject:

Pam,

It sounds like you were going to just refi into a fixed with your current lender at 6.75%. Before you roll with that, you would check around to see if you can get a much lower rate while REFINANCING with another lender. Check the rates and to the cost benefit analysis to see which scenario is best for you.

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