different loan programs

Hello everyone,
I was doing some research on different types of loans and wanted to know what anyone thinks or experiences are with the following loan programs: COFI, CODI, COSI, MTA, Negative amortized loans, & regular adjustable rate and 30yr fixed mortgages. I would appreciate any info at all from anyone that uses or knows about these different types of loan programs. Which is best for investors or any homebuyer.
Thank You, Youngone


The 12 month MTA (or 12-Month Treasury Average Index) is based on the average annual monthly yields of U.S. Treasury Securities, (T-Bill) adjusted to a constant maturity of one year, as made available by the Federal Reserve. This Index is determined by adding together the monthly yields for the most recent 12 months and dividing by 12. Because it’s an average, higher yields in some months are offset by lower yields in others. This Index has averaged below 5% over the past 14 years.

The MTA-Index mortgage is an Adjustable Rate Mortgage (ARM.) Because it is one of the slowest moving Indexes either in the US or Europe (*COFI would be the slowest moving), and because it has a 7.5% yearly Payment Cap, a low fixed Margin, a 9.95% max Life Cap, and the ability to make five (5) monthly payment choices it is one of the safest of all ARM mortgages offered today:

  1.  1% to 1.25% "Minimum payments." 

2% with loan amounts over 2 million.

  1.  "Interest-only" payment.
  2.  "Fully Indexed" (Index + Margin) payment. - (The "Minimum" payment, "Interest-only" pmt. & the "full P.I." payment your mortgage will still be paid off in 30 or less.) 
  3.  "15 yr." payment.
  4.  Pay any amount over the "Minimum" pmt. - (This option is always left blank on your monthly statement.)


 The Cost of Funds Index reflects the weighted-average interest rate paid by 11th Federal Home Loan Bank District savings institutions for savings and checking accounts, advances from the FHLB, and other sources of funds. The 11th District represents the savings institutions (savings & loan associations and savings banks) headquartered in Arizona, California and Nevada.

 The 11th District Cost Of Funds Index is the slowest moving and most stable of all ARM indexes. It smoothes out a lot of the volatility of the market. Since its initial publication (in 1981) the annualized volatility of COFI has been only 6.2% compared with more than 20% for the 1-Year CMT index during the same period.

 Since the largest part of the Cost Of Funds index is interest paid on savings accounts, this index lags market interest rates in both uptrend and downtrend movements. As a result, ARMs tied to this index rise (and fall) more slowly than rates in general, which is good for you if rates are rising but not good for you if rates are falling. Because this index generally reacts slowly in fluctuating markets, adjustments in your ARM interest rate will lag behind other market indicators.

Thank you, I appreciate the info.