How do I know which loan program will benefit me the most?

Sam

In deciding which loan program will benefit you the most you need to consider the following important points :

Loan Amount
Loan Type - Loans can be conforming and non-conforming.Again, loans can fixed (FRM) or adjustable (ARM). There are various other options, you have to choose which will suit you the best.
Loan Amortization - A shorter amortized loan will build up your equity faster and will therefore provide you with a debt-free home. However, mortgage payments are higher for shorter amortized loans .
Loan-to-Value Ratio

Guest 0.10 Dollars($)

what are the pitfalls of a cosi loan - when was the last time it was adjusted to a higher percent?

Samantha · Posted: Mon Mar 06, 2006 6:30 pm Post subject:

Hi Liz,

Welcome to MortgageFit Forums.

Thee main disadvantage of a COSI loan is that it is adjustable rate mortgage and its rates depend on the changes in the COSI index.

So, if the rates increase, then you have to pay at a higher rate during the loan period. But with a fixed rate you can pay as per the rate settled at the beginning even there is a change in the market rate.

The adjustment in a COSI is made on a monthly basis and has a one month lag in reporting. It is usually computed on the last of each month.

So far I remember I think it was changed to a higher percent in January this year.

God bless you.

For MortgageFit,
Samantha

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