COSI - Cost of saving index yea or nay?

[AristotlesOwn]

About a year ago at a cookout, I met a guy who was refurbishing homes in Plainfield, New Jersey and was financing their mortgages throught this method (COSI). He works at a prominent bank, and said that Alan Greenspan (one of the bank patrons) had been using this for years since it has historically been one of the most stable adjustable payment indexes. It's based on the indexes of the averages of SAVINGS rates (savings, cds, checking w/ interest) within a particular bank. It's been said that the wealthy use this in secret for the most part. I've read about it and it seems like a good idea, but I'm sure some of you have had more experience w/ this.

I believe this guy Jon Alan specializes in this particular index
website:

<a href="http://www.jonalan.com/">Jon Alan.com</a>

I'm not looking to use it now, but I would like some insight into whether it would be a good idea to use it in the future.

 

[Lick]

Very good my brother!
To answer your question, yes. The COSI is considered to be the very best rates a borrower can receive. When you look the five types offered, the LIBOR is the worst for the borrower as far as stable rates are concern. If you were to glance at it on a graph diagram it will appear like that of Shark teeth.
In order, this is normally the way they are viewed from not so good to the best for the borrower:

LIBOR London Interbank Offered Rate is the Worst
MTA Monthly Treasury Account is the 2nd worst
COFI Cost of Funds Index
CODI Certificate of Deposit Index is a based on bank CD’s
COSI Cost of Savings Index
In addition, FICO scores above 640 are needed for the CODI & COSI backed loans.
Good one my brother… Stay up! LICK

 

[afroyale]

COSI?

That is just another exotic mortgage designed to con unsuspecting consumers into financial ruin. Forget about ARMs, I/O or any combination thereof. When you're ready (not now I hope), go the old fashioned way -- 20% down payment, 30 year fixed. ARMs are ok when interest rates are falling or there are no rate increases predicted.

Just for fun, check out the number of foreclosures or pre-foreclosures in your neck of the woods (http://www.realtytrac.com/freeSearch.asp?StateSel=NJ ). The increase in foreclosures is due to regular folks buying houses they couldn't afford, using exotic loans like COSI. I mean, how you gonna make $40K a year and buy a $600K house with no money down... WTF!?

I'd sure like to know how your friend's business is doing today because last year is so old news.

 

[AristotlesOwn]

COSI?

That is just another exotic mortgage designed to con unsuspecting consumers into financial ruin. Forget about ARMs, I/O or any combination thereof. When you're ready (not now I hope), go the old fashioned way -- 20% down payment, 30 year fixed. ARMs are ok when interest rates are falling or there are no rate increases predicted.

Just for fun, check out the number of foreclosures or pre-foreclosures in your neck of the woods (http://www.realtytrac.com/freeSearch.asp?StateSel=NJ ). The increase in foreclosures is due to regular folks buying houses they couldn't afford, using exotic loans like COSI. I mean, how you gonna make $40K a year and buy a $600K house with no money down... WTF!?

I'd sure like to know how your friend's business is doing today because last year is so old news.

No, I'm not rushing into this. I'm far from ready. At the moment I'm just doing reconaissance; gathering as much information as I can. I'm trying to avoid costly mistakes. The forclosure website you provided was pretty informative. Like I said before, I'm still in grad school full time and I don't have a "regular" 9 to 5, but I am stacking some part time money at the moment. The information I obtain will be used primarily for purchasing my own place w/ investment properties coming in when I feel the time is right.

By the time I receive my doctorate around 2010, I want to be well on my way to being financially secure and repaying my debts, meaning having at least 1 business up and running, maybe 1 or 2 investment properties not including my own residence, and funds accruing in a decent interest bearing savings account like ING. I'm trying to avoid working for the man as much as possible, that is my main goal. I'll do that only if it's really necessary.

The point is, I'm looking to build serious wealth...sooner (in my early/mid 20's) rather than later...and I know you can't do that at a regular 9 to 5. Not get-rich-quick mind you, but WEALTH...ASSETS.

 

[afroyale]

No, I'm not rushing into this. I'm far from ready. At the moment I'm just doing reconaissance; gathering as much information as I can. I'm trying to avoid costly mistakes. The forclosure website you provided was pretty informative. Like I said before, I'm still in grad school full time and I don't have a "regular" 9 to 5, but I am stacking some part time money at the moment. The information I obtain will be used primarily for purchasing my own place w/ investment properties coming in when I feel the time is right.

By the time I receive my doctorate around 2010, I want to be well on my way to being financially secure and repaying my debts, meaning having at least 1 business up and running, maybe 1 or 2 investment properties not including my own residence, and funds accruing in a decent interest bearing savings account like ING. I'm trying to avoid working for the man as much as possible, that is my main goal. I'll do that only if it's really necessary.

The point is, I'm looking to build serious wealth...sooner (in my early/mid 20's) rather than later...and I know you can't do that at a regular 9 to 5. Not get-rich-quick mind you, but WEALTH...ASSETS.

You are on the right path.

 

[Lick]

No, I'm not rushing into this. I'm far from ready. At the moment I'm just doing reconaissance; gathering as much information as I can. I'm trying to avoid costly mistakes. The forclosure website you provided was pretty informative. Like I said before, I'm still in grad school full time and I don't have a "regular" 9 to 5, but I am stacking some part time money at the moment. The information I obtain will be used primarily for purchasing my own place w/ investment properties coming in when I feel the time is right.

By the time I receive my doctorate around 2010, I want to be well on my way to being financially secure and repaying my debts, meaning having at least 1 business up and running, maybe 1 or 2 investment properties not including my own residence, and funds accruing in a decent interest bearing savings account like ING. I'm trying to avoid working for the man as much as possible, that is my main goal. I'll do that only if it's really necessary.

The point is, I'm looking to build serious wealth...sooner (in my early/mid 20's) rather than later...and I know you can't do that at a regular 9 to 5. Not get-rich-quick mind you, but WEALTH...ASSETS.

Hey Dawg,
I want to add this… If I was able to this all over again my first house would be a duplex or triplex. The loans are the same for a SF and you can rent out the other units for income. The cost to get in one is not that much more then your two ot three bedroom home.
Stay up my brother,

LICK!