Index |
Most Recent Value |
|
|
|
1.210% |
|
0.480% |
|
0.500% |
|
|
|
0.595% |
|
1.111% |
|
1.606% |
|
3.250% |
Pick the Index that works best for you.
Click Here for a chart showing historical index values.
With an adjustable-rate mortgage, on each interest rate change date, an ARM’s interest rate adjustments are based on your loan program's Index plus a margin, as specified on your loan's Note.
1-Year Constant Maturity Treasury Yield ("1-year CMT")
The weekly average of the 1-year CMT is a common Index used for ARMs. This Index value changes weekly, and can increase or decrease greatly over a short period of time. You loan's Note will specify a certain number of days prior to the loan rate change date to determine the proper Index value to use for each interest rate adjustment.
Daiily as well as both weekly average and monthly average constant maturity Treasury yield values are published in Federal Reserve Statistical Release H.15.
Yields on Treasury securities at "constant maturity" are interpolated by the U.S. Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. These market yields are calculated from composites of quotations obtained by the Federal Reserve Bank of New York.
The constant maturity yield values are read from the yield curve at fixed maturities, currently 1, 3 and 6 months and 1, 2, 3, 5, 7, 10, 20 and 30 years. This method provides a yield for a 1-year maturity, for example, even if no outstanding security has exactly 1 year remaining to maturity.
For the current 1-CMT index value and historical values from the Federal Reserve Statistical Release, Click Here. For a graph of historical values for the weekly average 1-year CMT, Click Here. For a graph of the historical monthly average 1-year CMT values, Click Here.
12-Month Treasury Average ("MTA")
The MTA is a "lagging index" that is 12-month moving average of the 1-Year Constant Maturity Treasury yield monthly average. Because the MTA Index is a calculated average, it will move slowly and smooth-out any large one-time 1-Year CMT monthly value fluctuations that might occur.
This Index value is recalculated and changes monthly. For a table of the MTA index historical values, Click Here. To view a graph of the historical MTA values, Click Here.
11th District Cost of Funds ("COFI")
The 11th District Monthly Weighted Average Cost of Funds Index (COFI) is one of many indices used by mortgage lenders to adjust the interest rate on adjustable rate mortgages. The monthly COFI reflects the actual interest expenses recognized during a given month by all savings institution members of the Federal Home Loan Bank of San Francisco.
COFI is also considered to be a lagging index. The Monthly Weighted Average Cost of Funds Index for 11th District Savings Institutions ("Monthly COFI" or "COFI") is not an interest rate. COFI is computed from data reported by savings institutions that are members of the Federal Home Loan Bank of San Francisco, and it reflects the average interest paid by the savings institutions for their various sources of funds over a specified period of time.
For the current COFI index value and historical values from the Federal Home Loan Bank of San Francisco, Click Here. For a graph of historical COFI index values, Click Here.
LIBOR (London Interbank Offered Rate)
LIBOR is becoming an increasing used index for mortgage loans. LIBOR is the rate international banks charge each other, and varies among the participating banks and throughout each business day reflecting global economic conditions. Standard LIBOR index rates (averages, fixed at a specific time each day) are published for various maturity terms.
For example, the six-month LIBOR is the average for six-month denominated deposits and the one-year is the average for one-year denominated deposits in the London market, as published on a daily basis by the Wall Street Journal.
The LIBOR index values shown here are as reported in the Wall Street Journal for the last business day of each month, as published on the first business day of the following month.
Click here for a chart of 1- and 3-Month LIBOR index historical values. Click here for a chart of 6- and 12-Month LIBOR index historical values.
The Major Bank Prime Rate
While individual commercial banks each set their own Prime Rate (an interest rate formally announced by a bank to be the lowest available at a particular time to its most credit-worthy customers), the Major Bank Prime Rate as published by the Wall Street Journal is defined at the base rate on corporate loans post by at least 75% of the nation's 30 largest banks.
This index is commonly used for Home Equity Lines of Credit (including Pacific Trust's Light Green Account), Personal Lines of Credit, construction loans, commercial loans and credit card loans. At Pacific Trust Bank, most loans adjust either monthly or quarterly based upon the Prime Rate index value as of the 1st day of the prior month (e.g., the Prime Rate in effect for September 1 is used for loan rate changes effective October 1st).
General information about ARMs and Home Equity Lines of Credit:
