Adjustable-Rate Mortgages (ARMs)
Cost of Funds-Indexed ARMs: Indexed to the actual costs that
a particular group of institutions pays to borrow money, the most popular
of this type is the COFi for the 11th Federal Home Loan Bank District.
COFi ARMs can adjust every month, every six months, or every year, and
the per-adjustment caps and lifetime rate caps vary.