Question:

What are the characteristics of a 12 MTA ARM home loan?

Answer:

A 12 MTA ARM home loan has all the features of an Option ARM mortgage. On the whole, taking a MTA indexed loan keeps your mortgage payment significantly low in the first years of the loan. MTA ARM loans are a nice alternative to fixed rate 15 and 30 year mortgages.

Main Features and Advantages of 12 MTA ARM Home Loans

  • 1 to 1.25% start rate;
  • MTA-indexed ARMs offer minimum, interest only and fully amortizing payment plans;
  • Stated income MTA adjustable rate mortgages are available;
  • 12 MTA home loans allow for tax planning;
  • Your monthly payment is reduced in the hundreds;
  • Can be used for investment purposes;
  • Great for credit-impaired borrowers with high debt-to-income ratio (DTI);
  • MTA is a relatively slow index and MTA loans have great margins.

Disadvantages of 12-Month MTA ARM Mortgages

No mater what, this is an adjustable mortgage. If you are not going to make use of the flexible payment plan of a MTA loan and you plan on paying off your mortgage, you may be better off with a standard 30-year fixed rate mortgage.

Usually, 100% financing on a MTA loan is uncommon. If this is what you need, you may consider an Interest Only ARM.

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Common misspellings: mortage and morgage