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Virginia MTA LoansMTA loans, available in Virginia, are available from several lenders. I have converted both my Virginia home and investment property to Virginia MTA Loans. An issue for many homeowners is managing income and expenses,. Income varies and unplanned expenses come up. Our mortgage payment is our largest monthly expense, and the least flexible. Virginia MTA loans were designed to give you control over your mortgage. Choose one of four payment options each month based on your cash flow needs. Email me with any questions about Virginia MTA Loans Minimum Payment A payment is set for 12 or 60 months at a reduced rate. The minimum payment rate for the 12 month option is currently 1.00% and the 60 month option is1.90%. This option maximizes cash flow and may also defer payment of interest allowing greater flexibility in managing your tax deductions. This minimum payment can not increase by more than 7.5% each year. Read about the important tax considerations of Virginia MTA loans. If you have concerns over deferred interest, read about the small amount of appreciation required to offset it. Interest Only Payment Defer paying principal and improve your 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 an MTA Loans statement as well. The 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 rate, there is a 5 year fixed payment option. With the 5 year Fixed Payment option, you have a fixed minimum payment for five years. You still have the four payment options to select from monthly to manage your cash flow. You also have the ability to increase the term of your loan from 30 to 40 years lowering your payment even further. 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
$1,633
$1,222
$14,660
Savings over 3 years $39,450 I have developed an Adobe document detailing how this new program works. Send me an email requesting a copy of "Understanding Virginia MTA Loans". I have added a website dedicated solely to Virginia MTA Loans.
Here is a useful
Virginia MTA Loans
payment calculator 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.
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