John Feehan Mortgage Broker - Real Estate Home Loans, Long Beach CA

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Independent California Mortgage Broker
(Lic # 01014124)

John@MyBoxOfMail.com
(562) 679-1079

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Index Descriptions

The Prime Rate is the interest rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered commercial banks to their most creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The rates reported are based upon the prime rates on the first day of each respective month.

The FHLMC 30 or Freddie Mac 30 Year is the contract rate on 30-year, fixed-rate conventional home mortgage commitments.

The CMT or Constant Maturity Treasury Index is described as the yield on actively traded non-inflation-indexed issues adjusted to constant maturities. The 30-year Treasury constant maturity series was discontinued on February 18, 2002, and reintroduced on February 9, 2006.

The COFI or 11th District Cost of Funds was first calculated July 1981. The value of the index is the weighted average cost of funds derived from interest payments on savings accounts, Federal Home Loan Bank (FHLB) advances and other borrowed money. The 11th district of the FHLB is made up of 80 member banks in Arizona, California & Nevada. The index is made of nearly $300 billion in pooled funds. The monthly index is announced on or near the last Friday of each month.

The 12 MTA or Monthly Treasury Average Index, also known as 12-Month Moving Average Treasury Index (12 MAT) is defined as the average of the annual yields of US Treasury securities adjusted to a constant maturity of 1 year. In plain English, this index is calculated by averaging the previous 12 months of the 1 year CMT. Because this particular index is an annual average, it is steadier than the 1 Year Treasury Index. It fluctuates slightly more than the COFI, although its movements track each other very closely. The Federal Reserve posts the prior month's average MTA rate on the first Tuesday of each month.

The LIBOR or London Interbank Offering Rate is the average interbank rate for dollar deposits in the London market based on quotes from 5 major banks. The posted rate is available as of 11:00 a.m. (London Time) on the second to last business day of each month.

The CODI or Certificate of Deposits Index is published the first of every month. The CODI is the average of the most recently published monthly yields on 3-month certificates of deposit for the twelve most recent calendar months as published by the Federal Reserve Board.