A cost of funds index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans.
COFIs, in turn, are usually calculated by a self-regulatory agency like Federal Home Loan Banks.
An index used to determine interest rate changes for some adjustable-rate mortgages.
The 11th District Cost of Funds Index was first introduced in December 1982.
It is a National Monthly Median Cost of Funds defined as interest (dividends) paid or accrued on deposits for Western American Financial Institutions.