Question:

Is the MTA Pay Option ARM a good mortgage loan?

Answer:

The MTA Pay Option ARM is a great tool for several reasons and mainly in times of rising mortgage rates. The MTA ARM index is called the Monthly Treasury Average and is tied to the 12-month average of the US Treasury securities.

Compared to Option ARMs tied to other indexes, such as COFI, COSI and CODI, the MTA Pay Option ARM shows lower fully indexed rates according to 15-year statistics.

Because the MTA index is based on an average, it takes it longer to rise, or fall which is good for the borrower when rates are climbing up.

Not only the MTA Pay Option ARM, but other investment instruments tied to MTA index are considered a good choice because of the lower volatility compared to other more fluctuating indexes.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: