Cost of Saving Index (COSI) ARMs Saves You Thousand of Dollars

Worlds adjustable Rate Mortgage (ARM) are designed to outperform fixed rate mortgage and save you thousands of dollars over the life of your loan.World Saving index (COSI) is linked to the World saving and loan favorable cost of saving.

To prove that a World COSI ARM is better than a fixed rate loan, we looked all the way back to 1993 to calculate the saving you would have pocketed with World Saving (COSI). The results are indisputable - Worlds COSI ARM would have regularly out-performed fixed rate mortgages. No matter whether rates are high or low. Most homeowners who chose a World COSI ARM over a fixed rate loan could have saved thousands of dollars in interest.

Just review the chart below. Youll see that, whether interest rates were high or low, World COSI adjustable could have saved homeowners more money over the long haul that fixed rate mortgages.

Date Loan Originated APR*Fixed APRCOSI ARM Cost of $100,000 loanFixed Cost of $100,000 loanCOSI ARM COSI Saving over Fixed COSI Saving over Fixed as % COSI Saving over Fixed w/Periodic Refinancing as %January1993 8.50% 7.30% $101,699 $82,854 $18,845 19% 12%July 1993 7.66 7.06 87,760 80,151 7,608 9 4January1994 7.52 6.82 83,027 77,337 5,690 7 2July 1994 8.93 6.72 96,274 74,686 21,588 22 9January 1995 9.79 7.47 102,112 71,370 30,742 30 9July 1995 8.20 8.23 81,023 67,530 13,493 17 7January 1996 7.80 8.06 73,606 64,029 9,577 13 7July 1996 8.87 7.83 80,459 60,530 19,928 25 9January 1997 8.25 7.89 71,000 57,272 13,728 19 8July 1997 8.31 8.01 67,933 53,722 14,210 21 8January 1998 7.71 7.95 59,498 50,068 9,429 16 8July 1998 7.48 7.90 54,377 46,360 8,017 15 8January 1999 7.18 7.57 49,039 42,877 6,162 13 7July 1999 8.12 7.40 51,911 39,322 12,588 24 13January 2000 8.49 7.60 50,494 35,901 14,593 29 15July 2000 8.84 8.02 48,508 32,139 16,369 34 15January 2001 7.94 8.43 39,979 28,219 11,760 29 17July 2001 7.59 7.71 34,737 24,455 10,282 30 18January 2002 7.41 6.28 30,513 21,456 9,057 30 19July 2002 6.95 5.81 25,499 18,704 6,796 27 17January 2003 6.13 5.45 19,837 16,060 3,778 19 19July 2003 5.24 5.00 14,823 13,653 1,170 8 8January 2004 6.09 4.73 14,057 11,390 2,667 19 19July 2004 6.56 4.76 11,902 9,159 2,744 23 23January 2005 5.99 4.95 8,226 6,855 1,372 17 17July 2005 5.90 5.559 5,327 4,329 998 19 19

*COSI ARM rate is 2.75% over Worlds Cost of Saving Index (COSI); fixed rate is FNMA 30 days rate plus .25%

So if youre wondering when is the right time to get a World COSI Mortgage, the answer is almost any time youre buying or refinancing a home.

Over the years, many homeowners have been tempted to take a fixed rate loan because they speculated that interest rates were at the lowest point they were likely to hit for the foreseeable future. Judged by World Savings experience with both fixed and adjustable loans, almost all of these borrowers have been wrong. In fact, looking at home loan rates between 1993 and the present, the chance of picking a perfect moment when you might actually have saved money with a fixed rate loan compared to a COSI-type loan would have been small.

The numbers prove it. Some people considering fixed rate loan think that refinancing is the key to outperforming a World COSI ARM. Again, assuming COSI loans had been available in 1993, most fixed rate borrowers who constantly refinanced to take advantage of declining rates still would have spent thousands more than homeowners with a COSI loan. Thats because the interest on a World Adjustable Rate Mortgage is automatically adjusted lower as rates decline --- which means World COSI loan customers enjoy all the benefits of refinancing without any of the expense!

If you would like to know more about the exciting benefits of a World COSI ARM visit https://www.homeloanexperts.com/expert/artokun.html

About the Author

Loan Consultant and Financial Writer

Recommended Loan and Refinance Service: uslso.com
 

Recommended Loan and Refinance Service: uslso.com