Question:

What are MTA, COFI, CODI, COSI, LIBOR, CMT and T-Bill?

Answer:

MTA, COFI, CODI, COSI, LIBOR, CMT and T-Bill are the most popular ARM indexes. Adjustable rate loans are tied to an economical index that can rise or fall, change faster or slower.

MTA, COFI, CODI, COSI, LIBOR, CMT and T-Bill are abbreviations of the following:

  • 12-Month Treasury Average (MTA or MAT)
  • 11th District Cost of Funds Index (COFI)
  • Certificate of Deposit Index (CODI)
  • Cost of Savings Index (COSI)
  • London Inter Bank Offering Rates (LIBOR)
  • Constant Maturity Treasury (CMT or TCM)
  • Treasury Bill (T-Bill)

Libor, COFI and CMT account for more than 75% of all ARM loans. Even though there are no better or worse ARM indexes, they all have slightly different features. Some ARM indexes are more volatile, others are more stable. Also, some have lower values, and other are significantly higher.

However, the difference of MTA, COFI, CODI, COSI, LIBOR, CMT and T-Bill properties are compensated by lenders who use lower margins on higher value indexes, and higher margins on lower indexes. Borrowers, on the other hand, should be informed that lagging indexes as COFI are great when rates are rising. Volatile CMT indexes are best for borrowers when market rates are declining because the ARM rates are affected more quickly.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
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:

Common misspellings: mortage and morgage