Question:

Cost-of-Funds Index (COFI) Definition

Answer:

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.

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 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: