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Cost of Funds Index (COFI)

Definition - What does Cost of Funds Index (COFI) mean?

The cost of funds index is an index of mortgage rates on offer by all banks and financial institutions during any given period. It is used to determine the cost of new borrowings at any given level.

Justipedia explains Cost of Funds Index (COFI)

The cost of funds index can provide a foundation for lenders in determining a competitive mortgage rate. It can also be relied on by borrowers to determine whether they are being offered a fair deal.

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