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30 Year MTA Loan

30 Year MTA loan products are flexible. 30 year MTA loan products are my choice for my home and investment property 

30 year MTA loan products manage monthly income and expenses, or "cash flow". Income varies monthly and unplanned expenses come up. Our mortgage payment  is our largest monthly expense, and the least flexible. 30 year mta loans give greater control over your mortgage payment. You choose one of four payment options monthly based on your cash flow needs.

        Minimum Payment    A payment that is set for 12 or 60 months at a reduced rate. The minimum payment rate for the 12 month option is 1.00% and the 60 month option is 1.90%. This option  maximizes cash flow and may also defer payment of interest on your mortgage allowing greater flexibility in managing your tax deductions. Plus, this minimum payment can not increase by more than 7.5% each year. Read more about the important tax considerations of a 30 Year MTA loan. If you have concerns over deferred interest, read more 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    You may make a principal and interest payment based on a 30 year or 15 year payment schedule. I have included a 30 Year MTA Loan statement as well.

The 30 Year MTA Loan allows you to choose your index from the 1 month LIBOR (London Interbank Offered Rate) or the MTA (12 Month Treasury Average).

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 are looking for the additional security of a fixed payment while still taking advantage of the extremely low MTA loan payment rates, there is  a 5 year fixed payment option. With the 5 year Fixed Payment, you are guaranteed a fixed minimum payment for five years. You still have the four payment options to select from  to manage cash flow. And, you also may increase the term of your loan from 30 to 40 years lowering your payment even further. LTVs 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 available on the MTA loan based on the 10 year average. Assumes 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 30 Year MTA loan". I will send to you.

I have added a website dedicated solely to the 30 Year MTA Loan.

Here is a useful 30 Year MTA Loan payment calculator

Read very important information about 30 Year MTA Loan Prepayment Penalties

Read more about 30 Year MTA Loan Closing Costs

Search the site for more information.

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.