Mortgage Topics
Interest Rates
Fixed Mortgage Explained
ARM Mortgage Explained
Adjustable Rate Mortgage
2nd Mortgage Explained
Reverse Mortgage
Mortgage Refinancing
Home Equity Loan
Home Equity Line of Credit
Qualifying for a Mortgage
Locking Your Loan
Your Mortgage Down Payment
Closing Statement
APR or Annual Percentage Rate
Common Interest Rate Index’s
PMI or Private Mortgage Insurance
Mortgage, Tax’s, & Insurance
Title Insurance
Freddie Mac
Fannie Mae
Escrow
Fixed Mortgage Explained
ARM Mortgage Explained
Adjustable Rate Mortgage
2nd Mortgage Explained
Reverse Mortgage
Mortgage Refinancing
Home Equity Loan
Home Equity Line of Credit
Qualifying for a Mortgage
Locking Your Loan
Your Mortgage Down Payment
Closing Statement
APR or Annual Percentage Rate
Common Interest Rate Index’s
PMI or Private Mortgage Insurance
Mortgage, Tax’s, & Insurance
Title Insurance
Freddie Mac
Fannie Mae
Escrow

Common Indexes that Interest Rates are based upon
Interested in finding out where your ARM may be headed? Compare the current rate of your Adjustable Rate Mortgage against its historical performance; simply choose your index from the list of some of the most common indexes we have listed below. To find your index, consult your mortgage documents or ask your broker or lender.
Interested in finding out where your ARM may be headed? Compare the current rate of your Adjustable Rate Mortgage against its historical performance; simply choose your index from the list of some of the most common indexes we have listed below. To find your index, consult your mortgage documents or ask your broker or lender.
- Certificate Of Deposit Index (CODI) – Calculated on or near the first Monday of each month, the Certificate Of Deposit Index is the running 12-month average of the three-month certificate of deposit.
- Cost of Savings Index (COSI) – Calculated monthly on the last business day of each month, the Cost of Savings Index is based on the weighted average of all the interest rates paid on certificates of deposit to Wachovia customers.
- 11th District Cost of Funds Index (COFI) – From the website of the Federal Home Loan Bank of San Francisco: The 11th District Cost of Funds Index is computed from the actual interest expenses reported for a given month by the Arizona, California, and Nevada savings institution members of the Federal Home Loan Bank of San Francisco that satisfy the Bank’s criteria for inclusion in the 11th District Cost of Funds Index.
- London Interbank Offered Rate (LIBOR) – Wikipedia: The London Interbank Offered Rate is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market. LIBOR will be slightly higher than the London Interbank Bid Rate (LIBID), the rate at which banks are prepared to accept deposits.
- Prime Interest Rate The interest rate offered by banks to their best customers (not typically what the majority of us qualify for). This rate can vary from lender to lender
- Discount Interest Rate – The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank’s lending facility
- 12-month Treasury Average Index (MTA) – This index is calculated by adding together the last twelve monthly values of the One-Year US Treasury Constant Maturity and dividing the total by 12.
- National Average Contract Mortgage Rate – The National Average Contract Mortgage Rate is derived from the Federal Housing Finance Board’s Monthly Interest Rate Survey (MIRS).
- Constant Maturity Treasury (CMT) – This collection of indexes are calculated by the Treasury Department and reported by the Federal Reserve.
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