How are COFI loan rates related to other ARM rates?


Compared to COSI, CODI, MTA and LIBOR, the COFI loan rates are the lowest when ARM rates are at a peak, and average low when market rates are on the fall.

Also, COFI loans have almost the lowest margins all the time.

COFI Loan Rates And Other Features

Option ARMs based on COFI may have starting loan rates of 1% for 80% LTV, 2% for 90% LTV, and margins from 1.5% to 4.20%.

COFI loan rates and terms will vary among lenders but on the whole COFI loan rates go up or down very slowly, have very low margins (higher when accommodating no cost loans), and provide great reliability for borrowers when rates are on the rise.

However, even with a COFI based ARM, avoid prepayment penalties. They are difficult to get rid of, and expensive to pay down. When prepayment is not allowed, COFI loan rates will be lower.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: