CURRENT INDEX VALUE

The most recently published value of an underlying interest rate that is used to calculated the current payment index of an adjustable-rate mortgage (ARM). The most commonly used indexes for ARMs in the United States are LIBOR, the 11th District Cost of Funds Index (COFI) and the Cost of Savings Index (COSI). These indexes are published monthly or weekly, and the current value plus the spread specified in the mortgage contract will determine the coming month's interest payment for the borrower.

Each lender will have his or her own date guidelines for determining current ARM rates. If a given lender uses the index rate as it stands 10 days prior to assigning that month's interest rate, the borrower may need to look back at a previously published value of the index to find the rate that applies for the upcoming payment period.