One of the many alternatives we offer is
an interest only mortgage based on the 12 Month Treasury
Average. Also know as the 12-MTA.
The Monthly Treasury Average is a
relatively new ARM Index. This is also the same
as the 12 Month Moving Average Treasury or 12 MAT
ARM.
This ARM index is very similar to the
COFI or Cost of Funds Index and has a potential for negative
amortization with minimum monthly payment and a declining
market.
This index is comprised of the 12-month
average of the monthly average yields of the US Treasury
securities adjusted to a constant maturity of one
year. It’s calculation is comprised the previous 12
month average of the CMT or Constant Maturity Treasury which
is averaged monthly.
The MTA patterns can be defined below,
yet has a history of fluctuating only slightly more than the
COFI ARM and defines security and stability, with the only
other slower moving index being the Cost of Funds Index.
The MTA offers lower margins, start rate
and has many additional features such as minimum and
interest only payment options. Traditionally the
Lender offering the MTA does not sell these loans on the
secondary market, thus the consumer is saved having their
loan sold throughout the life of the loan.
Review below the History of the MTA for
the last couple of years and see for yourself the slow
movement and stability of the MTA!
|
May 02 2.667 Jun 02 2.552 Jul 02 2.414 Aug 02 2.272 Sep 02 2.180 Oct 02 2.123 Nov 02 2.066 Dec 02 2.002 Jan 03 1.935 Feb 03 1.857 |
|
Mar 03 1.747 Apr 03 1.646 May 03 1.548 Jun 03 1.449 Jul 03 1.379 Aug 03 1.342 Sep 03 1.302 Oct 03 1.268 Nov 03 1.256 Dec 03 1.244 |
|
How it
Works
Complete Our 1-Minute
Form
