Question:

How long and how is the 12 MTA rate calculated?

Answer:

The 12 Month MTA rate is calculated as the average of the last 12 month values of the 1-Year CMT. MTA stands for 12-Month Treasury Average (MTA). The calculation is done as follows:

12 Month MTA (May 2008) = [1-Year CMT (May 2008) + 1-Year CMT (April 2008) +...+ 1-Year CMT (June 2007)] / 12

The 12 Month MTA index values for the last 12 months can be found online.

The 12 Month MTA Rate History

MTA is considered a relatively new index. It has been around since 1955. If you need statistics on this MTA index, you may try the Federal Reserve Statistical Release H.15.

There are only monthly values for the MTA ARM index. Most lenders compute the MTA values on the last business day of the month. However, your lender may have a different approach to calculate the 12 Month Treasury Average MTA index.

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Common misspellings: mortage and morgage