Cost-of-Funds Index (COFI) Definition


The Cost-of-Funds Index (COFI) is one of the most popular and less volatile ARM indexes in the U.S. It is based on the weighted average of rates on savings and checking accounts by financial institutions in Nevada, California and Arizona. The average is said to be weighted because the costs of three types of funds are added together, rather than used separately to form the average.

Cost-of-Funds Index (COFI) is a primary choice in the U.S. West, while the Treasury Index is preferred in the U.S. East.

The 11th District Cost-of-Funds Index (COFI) is often used for ARMs adjusting monthly. COFI is also the preferred choice for ARM borrowers since it changes much more slowly compared to other ARM indexes.

Have in mind that the 11th District Cost-of-Funds Index (COFI) lags behind in time, as the COFI index for April will be reported in the last working days of May.

The 11th District Cost-of-Funds Index (COFI) has been in existence since 1981, when it was published for the first time by the Federal Home Loan Bank of San Francisco.

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