Cost of Funds Index (COFI)
An index that may be used to determine the interest rate changes of an adjustable rate mortgage (ARM). The Cost of Funds Index, or COFI as it is commonly called, is the weighted average of interest rates that Federal Home Loan banks have paid to their customers recently. Usually, the COFI for the 11th district of Federal Home Loan Banks is used and covers banks in California, Nevada, and Arizona. The index value is announced on the last working day of the month following the month listed. For comparison purposes here is the value of the index for the month of June over the last 10 years:

1990 – 8.086
1991 – 7.155
1992 – 5.258
1993 – 4.050
1994 – 3.804
1995 – 5.179
1996 – 4.809
1997 – 4.853
1998 – 4.881
1999 – 4.504
 
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