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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.

1 Month MTAOption Arm Minimum Payment    A payment is set for 12 or 60 months at a reduced rate. The payment rate for the 12 month option is 1.00% and the 60 month option is 1.90%. This minimum payment can not increase by more than 7.5% each year. Read about the tax considerations of a 1 month MTA option arm. For concerns over deferred interest, read about the small amount of appreciation required to offset it.

       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                                $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 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.

    1 Month MTA Option ArmPrequalify for your 1 Month MTA Option Arm

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