July 9, 2012

Michael Petruccelli asks; What is a cost of funds index (COFI)?

Michael Petruccelli says;  One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages. It represents the weighted-average cost of savings, borrowings, and advances of the financial institutions such as banks and savings & loans, in the 11th District of the Federal Home Loan Bank.