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MTA Home Loan

MTA home loans are flexible. MTA Home Loans are used on my home and investment property. 

MTA Home Loan products manage "cash flow". Income varies and expenses come up. Our mortgage payment  is our largest expense, and the least flexible. MTA Home Loan products are designed to give control over your mortgage payment. Choose one of four payment options monthly.

        Minimum MTA Home Loan Payment    A payment is set for 12 or 60 months at a reduced rate. The minimum MTA Home Loan 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. This minimum payment can not increase by more than 7.5% each year. Read about the important tax considerations of an MTA Home Loan. For concerns over deferred interest, read about the small amount of appreciation when using an MTA home loan required to offset it. Stated income MTA home loans are available with no cost.

        Interest Only MTA Home Loan 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 or 15 year payment schedule. I have included an MTA Home Loan statement as well.

Here is a useful MTA home loan payment calculator

The MTA Home Loan allows you to choose your index. Chose 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 want the additional security of a fixed payment while still taking advantage of the extremely low MTA home loan payment rate, there is a 5 year fixed payment option. With the 5 year Fixed Payment, you have a fixed minimum payment for five years. You still have the four payment options to select from to manage cash flow. And, you may increase the term of your loan from 30 to 40 years lowering your payment even further. LTVs are up to 100%!

Read very important information about MTA Home Loan Prepayment Penalties

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 mortgage loan 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

Learn more about MTA home loan closing costs.

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

I have added a website dedicated solely to MTA Home Loan.

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.