The COSI Loan (also known as the COSI Mortgage) is an adjustable payment (not rate!) loan that uses a Cost of Savings Index (COSI) of the lending bank.

The COSI rate is adjusted for the effects of financial instruments related to deposit accounts and other adjustments determined by Golden West in its sole discretion to accurately reflect the weighted average of interest rates on the deposit acccounts.

COSI index loans are primarily pick a pay negative amortization loans.

The COSI index is one of many indexes that mortgage lenders use to determine rates on ARM mortgages. Other indexes are the LIBOR,MTA and COFI index. Each separate index has its own performance and history so always research the index completely before signing any loan papers.

As with all Adjustable Rate Mortgages, the index is the MOST important component of the loan since the index is what drives the success or failure of that particular mortgage. The COSI has remained consistently low and extremely stable due to the fact that it is not based on market factors in a fluctuating economy. Give Milwaukee Mortgage Broker a call to review your situation and find out if the COSI is right for you.

This index is basically reflective of the rate World Savings is paying for it deposits.