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COSI home loans offer clients of Virginia Mortgage
Services the opportunity and flexibility to strategically manage their cash flow
by offering four monthly mortgage payment options. As you know,
traditional home loans such as a 15, or 30 year fixed rate mortgage, offer a
single payment choice that consists of principal plus interest. After your
mortgage lender deducts the interest portion due, the principal is then,
invested by the mortgage lender, with no benefit to you.
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Whether its a current refinance home loan, your next new home purchase mortgage,
or you are a first time homebuyer; With a
COSI home loan you have the option to select the payment method
that best suits your financial situation every month. Thus, giving you control
over your home loan payments.
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COSI home loans give you the
freedom to decide whether you would like to match your home loan payments to
your variable or seasonal income, or whether you would like to put more money
into retirement planning, investments, or college savings. In essence, a COSI
home loan gives you a "Choice" over how you pay your mortgage so you can do what
makes sense - for you.
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Option One- A 15 year fully amortizing
payment, which allows you to accumulate equity in your home at a faster rate.
This would obviously create a quicker payoff and save a substantial amount of
interest over time.
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Option Two- A 30 year fully amortizing
payment, which allows you to pay your home loan off in a 30 year timeframe as
most families are accustomed to, yet take advantage of fluctuations in the
market with the adjustable rate nature of the program.
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Option Three- An interest only home loan
payment which allows you to take full advantage of the potential tax savings
from a 30 year home loan while investing or utilizing the principal portion for
retirement planning, college planning, a debt consolidation home loan or any
number of other needs that may arise.
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Option Four - The minimum monthly payment
option is currently at 1.25%. This option maximizes cash flow giving you more
cash each month for other expenses. This option is great for Jumbo & Super
Jumbo Home Loans, with the lowest payment available, up to $1,500,000
million loan amount and no PMI.
How do COSI Home Loans work?
If your COSI home loans have an
adjustable rate. Based upon a $350,000 mortgage your monthly payment options
would be as follows:
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Principal and Interest
$1,932
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Minimum Amount Due:
$1,208 (currently based on a 1.50% start rate)
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Interest Only:
$1,531
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15-Year option:
$2,813
You decide each month which payment
to make and you can pay a different payment option each month.
COSI Payment Calculator - Input your loan amount and your
rate, of the loan you want to compare. This COSI mortgage calculator will only
calculate to 80% loan to value or purchase price. Any loans over 80% will have a
second deed of trust, to avoid PMI. Please
contact us at Virginia Mortgage Services for exact payments, rates and
programs.
Power Point slide
presentation on COSI home loans. This power point presentation does an
excellent job explaining the COSI home loan. Be patient, you may have a white
screen while it loads. Please take 15 minutes and review the slide presentation
on the COSI home loan. You must have
Microsoft Power Point.
How is Interest Rate
Determined for a COSI Home Loan?
COSI mortgages rates
are determined using a monthly adjustable rate concept to determine the actual
rate of interest charged. In the above payment example we used the the Cost of
Savings Index
(COSI Home Loans). Other commonly used indices include 3-Month
Certificates of Deposit Index (CODI Home Loans), Cost of Funds
Index (COFI Home Loans) A fixed amount of percentage points
(the "Margin") is added to the index which when combined with the indexed rate,
established your effective interest rate and as such your monthly payment.
Who Should Choose a COSI Home
Loan and Why?
COSI home loans are for anyone who wants to take control of their monthly cash
flow and financial future . As noted, COSI home loans give you the flexibility
to decide whether you would like to match your loan payments to your variable or
seasonal income or whether you would like to put more money into investments or
toward large expenses, such as college tuition. The choice is yours!
Contact us at Virginia Mortgage Services today to discuss your financial
goals and learn how the COSI mortgage loan may help you achieve them. Get
started now, by filling out our easy
online application
for COSI home loans!
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