Cost of Funds Index Drops to 2.744%
A Times Staff Writer
The cost of funds index for savings institutions in the Federal Home Loan Bank’s 11th District fell to 2.744% in February from 2.83% in January, lowering monthly payments on adjustable-rate mortgages in California, Arizona and Nevada.
The index, called COFI, sets payments on adjustable-rate mortgages through April.
The index also is used as a base rate for West Coast mortgages and for bonds backed by those loans. A decrease lowers monthly mortgage payments for homeowners and reduces the interest income on bonds backed by mortgages pegged to the index.
