11th District Cost of Funds (COFI) is an index that is used to determine interest rate changes for certain ARMs (adjustable-rate mortgage). COFI reflects the average interest rate paid by the member banks and savings institutions located in Arizona, California and Nevada. This index moves slower to market changes due to the
largest part of the index being based on savings accounts. The COFI is one of the most popular and considered the most stable of indices.The source of these funds for COFI includes savings and checking accounts, money market accounts, short term CD accounts, advances by the FHLB District Bank, and other borrowed money. |
