Mortgage Options

[mrtoledo]

What is the name of your state? MI

Not exactally a legal question but I have some general questions about mortgage types. I am looking at some different refinance options and most of the info seems to contradict itself.

I had someone present me with a offer for a COSI (Cost of Savings Index). The current index is 2.08 + 2.5 margin. (4.58 percent fixed).

My current loan is a 5.625 fixed.

I plan to live in this house for at least 5-10 years.

Nobody can forcast the future of interest rates, but what are peoples over all opinion of COSI loans?

I am aware of negative amortization possibility if you only make the minimum payment. I am more looking at the long term cost savings (or risk) assuming I payed at least the full amortization amount due.

[HomeGuru]

Originally Posted by mrtoledo

What is the name of your state? MI

Not exactally a legal question but I have some general questions about mortgage types. I am looking at some different refinance options and most of the info seems to contradict itself.

I had someone present me with a offer for a COSI (Cost of Savings Index). The current index is 2.08 + 2.5 margin. (4.58 percent fixed).

My current loan is a 5.625 fixed.

I plan to live in this house for at least 5-10 years.

Nobody can forcast the future of interest rates, but what are peoples over all opinion of COSI loans?

I am aware of negative amortization possibility if you only make the minimum payment. I am more looking at the long term cost savings (or risk) assuming I payed at least the full amortization amount due.

**A: fast off the cuff- keep your existing loan or figure the cost savings (if any) to refi based on a low ARM .

[MortgageGuru]

Don't do it. Only very serious and saavy investors should consider loans on terms that short.