1 Month MTA Option Arm
1 Month MTA Option Arm products are flexible. The 1 Month MTA Option Arm is used on my home and investment property.
A 1 Month MTA Option Arm helps manage monthly income and expenses. The 1 month MTA option arm gives you control over your payment. Income varies and unplanned expenses come up. Our mortgage is our largest monthly expense, and the least flexible. Choose one of four payment options each month.
"Understanding the 1 month MTA option arm" is available by email.
Interest Only Payment Defer paying principal and improve cash flow. This option is not available if the interest only payment is less than the minimum payment.
Fully Amortizing Payment Options Make a payment based on either a 30 or 15 year payment schedule. I have included a 1 Month MTA Mortgage Option Arm statement.
Choose from the LIBOR or the MTA indexes.
Here is a 10 year average comparison between a 30 year fixed and fully indexed LIBOR and MTA Index in chart form.
Additional Options If you want the security of a fixed payment while taking advantage of the low payment rate, choose a 5 year fixed payment option. You still have four payment options to select from to manage cash flow. You may increase the term of your loan from 30 to 40 years lowering your payment even further. LTVs on this product are 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 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
Savings over 3 years $52,872
I have added a website dedicated solely to this product
Here is a useful payment calculator
Read very important information about Option Arm Prepayment Penalties
Read more about Closing Costs
As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service.