Do you have enough money for the things you want? Retirement? College? Car? It’s because a standard 30-year fixed mortgage loan is probably the wrong answer. With our cash flow Mortgage Loan, you get:

0. Really Low monthly payments

0. It produces cash flow so you can buy other things with you current income

0. It turns your cash flow into hundreds of thousands of dollars for retirement!

Our MTA, COSI, COFI, and CODI adjustable rate mortgages offer you the most flexibility when qualifying for a loan, then put you in control of your finances when you start making payments. Manage your money the way you want with up to four payment options each month: Minimum Payment, Interest Only, Fully Indexed Payment, or Equity Building.

The COF and COS Indexes are based mainly upon Checking, Savings, C/D's in the 11th District, and the Fed Funds Rate.    Hence, the PRIME rate really doesn't affect the Index. These loans are extremely stable because the Credit Unions and Banks have NOT dramatically increased the interest rates on what they pay back to you and me on checking, savings, money market accounts and C/D's.

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This index is so stable, it's almost a fixed rate but it has all the benefits of an Adjustable Rate Mortgage (ARM).

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YOUR MONTHLY PAYMENT OPTIONS:
Rates example based on $200,000

Each month, you will receive an easy-to-read loan statement that lets YOU CHOOSE the payment amount that best suits your current financial needs. Pay the minimum to free up funds for other uses, or make larger payments for faster equity build-up.

OPTION 1: Minimum payment: Payment $734.00
The smallest payment to let you keep the most cash now.

Choose this option to let you keep more cash now and keep monthly payments manageable. Generally, this payment changes annually and is calculated using the initial interest rate "Start Rate" for the first 12 months. After that, the minimum payment is usually recalculated annually based on the outstanding principal balance, remaining loan term and prevailing interest rate. A 7.5% adjustment cap (of the previous payment, NOT interest rate) limits how much this payment can increase or decrease each year. Interest rate adjustment feature and payment change cap, and certain payment options, can POSSIBLY result in deferred interest. Making this minimum payment maximizes your cash flow, allowing you to do other things you want. You could for example, invest this money. You investment money DOUBLES every seven years if you earn a 10% return! (Rule of 72)

OPTION 2: Interest-only payment: Payment $823.00
Keep payments manageable while paying all your interest.

At those times when the Minimum Payment is not enough to pay the monthly interest due, you can avoid deferred interest with this option. You pay the minimum monthly payment and all additional interest accrued during the month. So you avoid deferred interest, and your payments are still manageable. Note: This option does not result in principal reduction.

OPTION 3: Fully amortized payment: Payment $1,066.00
Reduce your principal and pay off your loan on schedule.

It's calculated each month based on the prior month's interest rate, loan balance and remaining loan term. When you choose this option, you reduce your principal and pay off your loan on schedule, just like any standard loan.

15-year payment:
Own your home twice as fast.

If you want to build equity faster, pay off your loan quicker and save on interest, this is the option for you. It's calculated to amortize your loan based on a 15-year term from the first payment due date.

Bi-Monthly Option:
Pay your loan off faster

Add this option to let us automatically deduct 1/2 your mortgage payment every two weeks from your checking account. This is a great way to manage your mortgage, and save thousands more by paying your loan off years faster.

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Consider a COSI, COFI, or CODI Option Loan If:

• You want the smallest house payment you can get anywhere! 
• You want to maximize your cash flow to buy other things
• You want to minimize your house payment to pay off other debt.
• You want to minimize your house payment to invest the difference elsewhere
• You want to double your money every seven years (Rule of 72)
• You want to control the amount of tax-deductible interest you pay each month.
• You want to maximize your buying power-get a bigger house today!
• Your income tends to fluctuate or you're confident that your income will rise over the years

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  SIX YEAR HISTORY OF RATES

  Statistically, most borrowers move, refinance, or pay off their mortgage every 5 to 7 years. Let's assume that six years is the average.

  CODI (Certificate Of Deposit Index):  6 Year average = 4.56%

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  In a speech to a credit union group, Fed Chairman Alan Greenspan questioned whether fixed-rate mortgages were the most cost-effective means of financing a home purchase.  He said "American homeowners clearly like the certainty of fixed mortgage payments" but pay several thousands of dollars a year for the benefits.

  Greenspan said homeowners "might have saved tens of thousands of dollars had they held adjustable-rate mortgages rather than fixed-rate mortgages during the past decade"

  Greenspan noted that if homeowners are "willing to manage their own interest-rate risks, the traditional fixed-rate mortgage may be an expensive method of financing a home." Feb. 24, 2004

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  Why is CODI the "right" choice as an Adjustable Rate Mortgage Index?

  Historically, CODI does not move up or down as rapidly as market interest rates such as the prime rate, the discount rate, libor, or Treasury bill rates. Because CODI is calculated using a twelve-month moving average, higher CD yields are offset by lower CD yields. This average creates a less volatile index in which rates change less rapidly, allowing customers greater ability to plan financially.

  What is the Cost Of Deposit Index?

  The Cost Of Deposit Index (CODI) is a twelve-month moving average of the three-month certificates of deposit index, as published by the Federal Reserve Board.

  3-month certificates of deposit (secondary market) are an average of dealer offering rates on nationally traded certificates of deposit that are annualized based on a 360 day-year for bank interest, As of the date of this disclosure, the Federal Reserve Board publishes the index in its Federal Reserve statistical release, H.15. For purposes of determining the index, "published means first made available to the public by the Federal Reserve Board.

  We calculate the average by adding the twelve most recently published monthly yields together and dividing the result by twelve. The result is then rounded to the nearest 1,000th of one percentage point.

  Where can I get information about the index?

  • You can get information about monthly yields on 3-month certificates of deposit (secondary market) from:

  • The Federal Reserve Board's web site: http://www.federalreserve.gov

  • The nearest branch of the Federal Reserve bank listed in your local telephone directory. 

  • Federal Reserve statistical release H.15 which can be found in the Business Publications section of most public libraries. 

  • Wall Street Journal

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