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.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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