Mortgage (ARM) Indexes
CMT + CMT FAQ + T-Bill + T-Bill FAQ + MTA + MTA FAQ + CODI + COFI + COFI FAQ + COSI + W-COSI + LIBOR + LIBOR FAQ + CD + Prime Rate + RNY + FHFB Contract Rate |
Current Values + Release Dates + Comparison Chart + Which Index Is Better? + Mortgage Rate Trend Survey |
Historical Data + COFI History + COSI History + CODI History + MTA History + Prime Rate History + Daily WSJ LIBOR Histories + Mortgage-X LIBOR History |
Monthly CMT History + Daily CMT Histories + FHFB Contract Rate History + Federal COFI History + National Monthly Median COFI History + FNMA LIBOR History |
1-, 3-, 9-Yr Avg + 2-, 6-, 12-Yr Avg + 5-, 10-, 15-Year Averages + Prime Rate Forecast + MTA Rate Forecast + COFI Forecast + COSI Forecast + CODI Forecast |
Variability Table + Changes of Direction + W-COSI or CODI? + 6-Month Trends + Lagging Indexes + Find the Best Mortgage! |
Wachovia COSI or CODI?
Many World Savings / Wachovia customers have received letters from Wachovia
saying that their GDW COSI-indexed loan is being converted to the new
Wachovia COSI index. They can either switch to the Certificate of Deposit Index (CODI) or
let their mortgage automatically convert to the
Wachovia COSI. As these indexes are currently higher than the GDW COSI
index (as of Aug 2007), Wachovia would adjust the margin to offset the higher
interest rate.
The following graph compares the CODI index with both the old GDW COSI and the new Wachovia COSI based on their past performance. Assuming that the original margin is 2.85, it must be adjusted to offset the higher interest rate as follows:
Based on the above figures we have computed the interest rate for each of these indexes by adding the margin to the index value: |
Wachovia
COSI or CODI?
{ Obtaining Permission to Reproduce }
Though the CODI reacts more quickly to changes in the market than
the GDW COSI in both uptrend and downtrend movements, the number of months with the higher
CODI is approximately the same as the number of months with the higher COSI,
as our graph shows.
However, with the margin adjustment from 2.85 to 2.30, the number of months with the higher CODI-indexed interest rate would be definitely lower than the number of months with the higher COSI-indexed interest rate. Disclaimer
Back to Mortgage Indexes |
Interest Rate Forecasting: Economic Indicators | Mortgage Market Survey | Interest Rate Trends
Treasury Market and Mortgage Rates | Historical Mortgage Rate Data | Mortgage Indexes
Mortgage Lender Directory + Find The Best Mortgage + Search Mortgage Rates
Mortgage professionals are welcome to participate! | ||
Home + About Us + Contact Us + Disclaimer + Privacy Policy | ||
Copyright � 1998-2014 Mortgage-X.com All Rights Reserved |