My mortgage company was bought out by another one. They have sent me a letter which allows me to choose what my new rate to based on: the CODI (Certificates of Deposit Index), or the Wachovia COSI, which is their Cost of Savings Index.
I can't find any information online which compares these indexes, so I have no idea which would be best. Does anyone have information about this, and how to make an informed decision?
I am concerned that one or the other could wildly fluctuate separate from the market.
2007-08-11 07:55:28 · 6 answers · asked by ShirlD 2 in Business & Finance ➔ Renting & Real Estate
The CODI and the COSI are very close to each other, but the COSI is a private index created by World Savings. World savings is now owned by Wachovia. I'd say go with CODI, but it's not going to make much a difference.
I'm assuming you're on an option arm or cash management arm?
I actually have a 10 year historical graph that I can send to you and you can decide for yourself. Just email me at casey.x.casperson@chase.com and I'll hook you up.
Take care.
2007-08-11 10:25:39 · answer #1 · answered by The Smart One 4 · 0⤊ 0⤋
You have a contract signed at the time you signed your loan docs indicating what your rate would be.
Because your loan was sold to someone else or another company does not negate the terms of the loan that you current have, these terms are still in effect.
You may keep the same terms as when you signed for your loan.
I don't know why they would send you a document asking you to select a new rate.
Perhaps this document they sent you only outline the various rates comparing your loan to another as between the CODI and the COSI.
What are the present terms and rate of your current loan. Don't sign anything until you are sure of what you are signing.
Ask the new lender why they sent this document to you and what would be the consequences of you changing?
Don't get into anything you are not well versed on and understand. Make sure you get a good explanation as to what these documents mean, what if anything they change from your current loan, terms and rate.
Are you in an adjustable rate loan now and what index is your current loan tied to?
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-11 15:52:55 · answer #2 · answered by loanmasterone 7 · 1⤊ 0⤋
You need to get out of this and into a FIXED RATE mortgage ASAP. Variable rate mortgages are insane! Especially with rates at all time lows.
REFINANCE into a FIFTEEN YEAR FIXED rate morgage. ASAP.
2007-08-11 15:03:36 · answer #3 · answered by Anonymous · 0⤊ 1⤋
i think you may want to speak to someone at your local bank. This forum is not really the place to ask questions that are going to really influence your pocketbook, and potentially the lose of your home...
The loan officers at your banks are experts and can guide you. no so much here in this forum...
good luck :)
2007-08-11 15:00:44 · answer #4 · answered by Blue October 6 · 0⤊ 2⤋
CODI is a better and more used benchmark.
Go with that.
2007-08-11 14:59:24 · answer #5 · answered by moudoku 2 · 0⤊ 2⤋
You could always call them and ask, but I myself would just flip a coin.
2007-08-11 14:58:12 · answer #6 · answered by Joe L 4 · 0⤊ 2⤋