COSI loans?

4 Replies

You need to be specific on what you think is unbelievable; COSI is the name for the index in which a particular loan program can be based on.

I assume it must be attached to a 1 or 2% option ARM offer which has you surprised.

Regards,

Scott Miller

COSI - Cost of Savings Index is a good stable index used exclusively by World Savings, and I guess now that World Savings merged with Wacovia, it will be used by Wacovia as well.

One thing to watch out for is Negative Amortization. Make sure you understand that if you get a loan with option to make low minimum payment like 1% or 2%, your mortage balance will grow. Just keep that in mind.

I'm interested in the COSI loans as well. It seems to be the way to go if you're more interested in positive cash flow than mortgage paydown. ANyone have any experience with these loans?

Be careful about using these loans to cash flow---like the min. payment, the cash flow won't last forever...if your market is depreciating at the same time, you could be upside down when the loan recasts...Not too many people really understand these loan programs (including some of the people that sell it), a look before you leap is in order.

Regards,

Scott Miller

Originally posted by "beekrock":
I'm interested in the COSI loans as well. It seems to be the way to go if you're more interested in positive cash flow than mortgage paydown. ANyone have any experience with these loans?