Realtor Jargon:
Construction loan -
A short term loan for construction. Lenders usually disburse funds from construction loans in draws according to completion of defined stages throughout the construction process.


COFI Index (Cost of Funds Index)
This 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 COFI index is a popular index used for determining interest rates on adjustable rate mortgages.


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