Like Tree0Likes

OT: For you mortgage guys out there!

Reply
Old 11-24-2004, 06:40 AM
  #1
Registered
Thread Starter
 
Shane's Avatar
 
Join Date: Oct 2000
Location: Niskayuna, NY
My Boats: 2009 FORMULA 292
Posts: 5,543
Default OT: For you mortgage guys out there!

What is a COFI Loan? What is the good, the bad and the ugly? I asked around work and nobody knows what they are nor have they heard of them. A good friend is looking into one and asked if I knew anything about them and I told him NO, but I have a resource for answers to ALL questions! So don't let me down Mitch Stellin, DJD, Wayneaviator, etc etc etc. Thanks in advance.

Shane
Shane is offline  
Reply With Quote
Old 11-24-2004, 08:31 AM
  #2
Registered
 
jdnca1's Avatar
 
Join Date: Feb 2002
Location: KY
Posts: 1,099
Default Re: OT: For you mortgage guys out there!

Never heard of a COFI mortgage...but have seen "COFI" securities, it stands for "cost of funds index" It's definately a floater program...probably similar to libor based programs.
jdnca1 is offline  
Reply With Quote
Old 11-24-2004, 09:21 AM
  #3
Registered
 
Playn's Avatar
 
Join Date: Jan 2001
Location: BRENTWOOD, TN
Posts: 4,367
Default Re: OT: For you mortgage guys out there!

Low initial rate, similar to an ARM with the typical low starter rate where your payment can only increase gradually (fixed for that year) BUT your interest rate increases based upon the index. The difference is tacked onto the loan so you could end up having more mortgage debt (negitive amoritazation)
Playn is offline  
Reply With Quote
Old 11-24-2004, 09:24 AM
  #4
Registered
 
Jonas's Avatar
 
Join Date: Dec 2000
Location: Puerto Vallarta Mx, Lake tahoe Ca,
My Boats: motor sports boats bikes
Posts: 1,331
Default Re: OT: For you mortgage guys out there!

its a payment option arm. countrywide world savings etc do them and they are based o the cost of funds index,
good loan for retaining cash flow as start rates can be as low as 1%
gotta watch though as it can go neg am..
i have on some rentals as i am not planning on keeping for 15 or 30yrs to pay off anyway..
there are others like it too MTa , codi
currrntly i have a codi on rental mtg bal is 445k and min paymnt is 1700- slow moving index been at all time low...
its a great way to go..
bad is that alot of lenders wont lend behind one due to the possibility of it going negativly amortized basically your principal bal can rise if you make min pmt and rates go up//
there are also great programs on 3 and 5 yr fixed with interest only option....
check out both..
Jonas is offline  
Reply With Quote
Old 11-24-2004, 09:31 AM
  #5
Registered
Thread Starter
 
Shane's Avatar
 
Join Date: Oct 2000
Location: Niskayuna, NY
My Boats: 2009 FORMULA 292
Posts: 5,543
Default Re: OT: For you mortgage guys out there!

Thanks everyone. He says that the mortgage guy he has been talking to said that the rate can never go above 5.?%! I said that it sounds WAYYY to good to be true! I said why would the bank allow you to pay 1% in year 1, 2% in year 2, 3% in year 3, 4% in year 4 and 5.?% from there on out for the life of the loan? It just does not make economic sense. He is planning on stayingin this house for a long time. So it would clearly not make sense to re-fi this way given the expansion in the economy and the rising interest rate environment. Based on the aforementioned it would appear that the loan would quickly go into negative amoritization. Am I correct? Keep the info coming! Thanks again everyone! I KNEW OSO would not let down!
Shane is offline  
Reply With Quote
Old 11-24-2004, 09:44 AM
  #6
Registered
 
Jonas's Avatar
 
Join Date: Dec 2000
Location: Puerto Vallarta Mx, Lake tahoe Ca,
My Boats: motor sports boats bikes
Posts: 1,331
Default Re: OT: For you mortgage guys out there!

Quote:
Originally Posted by Shane
Thanks everyone. He says that the mortgage guy he has been talking to said that the rate can never go above 5.?%! I said that it sounds WAYYY to good to be true! I said why would the bank allow you to pay 1% in year 1, 2% in year 2, 3% in year 3, 4% in year 4 and 5.?% from there on out for the life of the loan? It just does not make economic sense. He is planning on stayingin this house for a long time. So it would clearly not make sense to re-fi this way given the expansion in the economy and the rising interest rate environment. Based on the aforementioned it would appear that the loan would quickly go into negative amoritization. Am I correct? Keep the info coming! Thanks again everyone! I KNEW OSO would not let down!
another lier,, thats bs
tell him to find a lender /broker that will evaluate his situatuon and not blow smoke up his tail/// oh i hate that **** when the dont tell the real deal..
someone on oso prob does loans in his state..
check i do west coast mainly..
Jonas is offline  
Reply With Quote
Old 11-24-2004, 09:46 AM
  #7
Registered
 
frequentflyer's Avatar
 
Join Date: May 2002
Location: Miami, FL
My Boats: 1998 Powerplay 25
Posts: 796
Default Re: OT: For you mortgage guys out there!

[QUOTE=Jonas]its a payment option arm. countrywide world savings etc do them and they are based o the cost of funds index,
good loan for retaining cash flow as start rates can be as low as 1%
gotta watch though as it can go neg am..

Jonas hit it right on the head. Just look at the caps to make sure it can't go up to a ridiculous %. Don't rely on what you are told but rather read the terms. I've heard some guys say "It won't go over 5%" just because of the averages in the past few years but you never, never know so watch the caps. Hope this helps....
frequentflyer is offline  
Reply With Quote
Old 11-24-2004, 10:06 AM
  #8
Registered
Thread Starter
 
Shane's Avatar
 
Join Date: Oct 2000
Location: Niskayuna, NY
My Boats: 2009 FORMULA 292
Posts: 5,543
Default Re: OT: For you mortgage guys out there!

Do any of you guys do loans in NY? If so, and if the rates are worth it, I may re-fi myself. I am currently at 6.125% fixed for 30 yrs. Also, my buddy that I am asking for he may consider working with one of you guys as well.

Thanks and happy turkey day!
Shane is offline  
Reply With Quote
Old 11-24-2004, 10:21 AM
  #9
Charter Member #232
Charter Member
 
Audiofn's Avatar
 
Join Date: Oct 2000
Location: Carlisle, MA USA
My Boats: 1979 Formula 302, 99 Formula 353, 81 Donzi 18 2+3 with 454
Posts: 18,379
Default Re: OT: For you mortgage guys out there!

Shane 6.125 for fixed 30 is not bad at all. I have 6.25 and went to refi and the banks said it was not worth it.....

Jon
__________________
Put your best foot forward!
Audiofn is offline  
Reply With Quote
Old 11-24-2004, 11:26 AM
  #10
Registered
Thread Starter
 
Shane's Avatar
 
Join Date: Oct 2000
Location: Niskayuna, NY
My Boats: 2009 FORMULA 292
Posts: 5,543
Default Re: OT: For you mortgage guys out there!

Jon,

Yeah, that's what some local banks told me as well. Have a great TURKEY DAY!

Shane
Shane is offline  
Reply With Quote
Reply

Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
boot
General Boating Discussion
16
03-20-2002 02:07 PM



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 07:00 PM.


Copyright 2011 OffShoreOnly. All rights reserved.