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Company Loan Type APR Est. Pmt.

Cosi Loan

Posted on: 28th Jul, 2006 10:28 am
Just received some info from my mortgage broker regarding a COSI loan. At the present time i have a loan balance on a 30 year fixed of 257,000 with an interest rate of 5.625. I still have 28 years left on the mortgage. I have been doing some research and still am not sure about what to do. Can you please give me some advise?
How long do you wish to keep the home?
Posted on: 28th Jul, 2006 10:52 am
hi casey,

welcome to mortgage fit forums.

i think you have got a very good rate with your fixed rate mortgage. why do you want to refinance? do you have any payment problems at present?

since you enquired about a cosi loan, i must tell you that cosi loans are adjustable-rate mortgages priced at a spread to the cost of savings index.

unlike cofi, cosi isn't easy to find or document how it is calculated. if you sign up for a cosi indexed mortgage, make sure that your lender provides you with historical data, information about how the rate is calculated and a way to track changes in the rate.

as there is little room for the cosi to go much lower, so you may be facing a whole lot of interest rate risk over the life of your loan to reduce your initial mortgage rate until the rate is fully indexed.

long-term homeowners should be better off locking in fixed-rate loans rather than trying to time the market. in my opinion if you don’t have plans to change your house shortly you should stick to your fixed rate especially when the market is having regular rise in its interest rates.

feel free to ask if you have any more doubts. you can go through this section on cosi loan for more information.

god bless you.

for mortgagefit,
Posted on: 28th Jul, 2006 10:56 am
Hi Casey,

You may find attractive rates and a lower payment on a COSI loan. But your principal loan amount will go up with time as you pay these low rates. The deferred interest is added back.

Do you have any problems with the loan payments if you don’t choose a COSI loan? Do you have some other plans to save money for some other purpose at present or expect a steep increase in your income in future?

Unless you have something like that it won’t be wise to choose a COSI loan. You have got very good rates and IMO stick to that.

Posted on: 28th Jul, 2006 11:10 am
do you have to pay to get in cosi
Posted on: 16th Dec, 2010 06:07 am
I guess so... you'll have to pay the closing costs.
Posted on: 16th Dec, 2010 08:49 pm
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