CODI Index, CODI Loans
A CODI loan is based on one of the most stable indexes currently available.
The Certificate of Deposit Index (CODI) is the 12 month average of the monthly average yields on the nationally published 3-Month Certificate of Deposit rates. Information on monthly yields on 3-month certificates of deposit (secondary market) is published by the Federal Reserve Board. Average is calculated by adding the 12 most recently published monthly yields together and dividing the result by 12.
Because this index is an annual average, it is more steady than CMT and CD indexes which are very volatile and generally considered to react quickly to change in the market. The CODI and MTA indexes generally fluctuate slightly more than the 11th District COFI, although their movements are very close.
CODI Based ARM Mortgages
For many, your mortgage payment is your largest monthly expense, and the least flexible. Many CODI Loans are designed to give greater control over your mortgage payment (Flex-payment loans). You can choose one of three-four payment options monthly based on your specific cash flow needs. some people call the CODI loan 1.5%, 2.5% etc. loan due to very low introductionary rate.
- The minimum payment is a payment that is set for 12 or 60 months at a greatly reduced rate. This option not only maximizes cash flow but may also defer payment of interest on your mortgage allowing greater flexibility in managing your tax deductions.
- The interest only payment allows you to defer paying the principal on your loan and improve your monthly cash flow. Your cash flow is improved by the money you save.
- With fully amortizing payment options, you have the ability to make a principal and interest payment based on either a 30 year or 15 year payment schedule.
Your first step should be to run the numbers on our web site to get an idea about CODI and other ARM loans, quote rates and closing costs. Then, use our network of lenders and expert mortgage specialists to find the best loan for your property.