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12 MTA Mortgage

12 MTA Mortgage products flexible. A 12 MTA Mortgage is used on my home and investment property. 

An issue for many is in managing income and expenses. Income varies and unplanned expenses come up. Our mortgage payment  is our largest expense, and the least flexible. The 12 MTA Mortgage was designed to give you control over your payment. Choose one of four 12 MTA mortgage payment options.

        12 MTA Mortgage Minimum Payment    A payment is set for 12 or 60 months at a reduced rate. The 12 MTAminimum payment rate for the 12 month option is 1.00% and the 60 month option is 1.90%. This maximizes cash flow and may defer payment of interest allowing flexibility in managing tax deductions. Read about the tax considerations of the 12 MTA mortgage. For concerns over deferred interest, read about the small amount of appreciation required to offset it.

        12 MTA Mortgage Interest Only Payment    Defer paying principal and improve cash flow.

        Fully Amortizing Payment Options    You may make a principal and interest payment based on a 30 year or 15 year payment schedule. I have included an 12 MTA Mortgage statement as well.

The 12 MTA mortgage product allows you to choose your index from the 1 month LIBOR or the MTA.

Here is a 10 year average comparison between a 30 year fixed and fully indexed LIBOR, MTA, COFI, and the 1 year Treasury Index. in chart form.

Additional Options    If you want the additional security of a fixed payment while  taking advantage of the low payment rates, there is also a 5 year fixed payment option. With the 5 year Fixed Payment, you have a fixed minimum payment for five years. You have the four payment options to select from to manage your cash flow. You also may increase the term of your loan from 30 to 40 years lowering your payment even further. LTVs on are available up to 100%!

The Minimum Payment Advantage    The example below is based on a $400,000 mortgage. It compares a traditional 30 year fixed rate payment based on the above 10 year average to the minimum payment available on the 12MTA Mortgage again based on the 10 year average. Assumes that the Minimum Payment increases by the maximum 7.5% per year.

                    30 Fixed                    Cash Flow Minimum                 Monthly Savings                    Annual Savings

Year 1        $2,855                                $1,287                                        $1,586                                    $18,816
Year 2        $2,855                                $1,384                                        $1,471                                    $17,652
Year 3        $2,855                                $1,488                                        $1,367                                    $16,404

                                            Savings over 3 years        $52,872
                                            Savings invested at 8%    $56,885

I have developed an Adobe document detailing how this program works. Send me an email requesting a copy of "Understanding the 12  MTA Mortgage".

I have added a website dedicated solely to the 12 MTA Mortgage.

Here is a useful 12 MTA Mortgage payment calculator

Read more about 12 MTA Mortgage Closing Costs

I have an article "Buying your home in 2008" by email explaining negotiating strategy in today's market.

Learn more about Loan Modification. If you can not refinance, it may be the best way to save your home today.

As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your debt is structured today can have a life changing effect in the years to come.  Read more about this free, no obligation service.

    12 MTA MortgagePrequalify for your 12 MTA Mortgage

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