mta index :: florida adjustable rate mortgage

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The "Option Index" Arm mortgage program offers you the flexibility of making monthly payments that make sense and best suit your financial needs at the time of payment. It offers three different options every month:

Make a low, low minimum payment.
Pay the interest only.
Make a full 30 year ( Principal & Interest ) amortized payment. Make extra payments against principal and receive immediate credit and reduction of loan amount. Making additional principal payments reduces the loan amount and future monthly payment.

Why make the same mortgage payment every month for 30 years when you have a choice with the "Option Index" Arm mortgage program?

Choose .... to reduce your monthly payment to pay down high interest credit cards.

Choose .... to increase your monthly payment in good times to reduce your mortgage payment later in life or when you need to.

Choose .... reap the benefits of today's financial markets by making investments with the extra money.

Choose.... to keep extra money for short term emergency needs by making the minimum payment. It's like money in the bank.

Choose.... to make low interest , tax deductible payments and put the difference into high yield investments.

Choose .... to eliminate expensive refinancing to save when rates decline. Your interest rate automatically declines when mortgage rates drop.

Purchase * Refinance * Cash-out Refinance

   Up to 90% LTV financing.
   Primary Residence * Second Home * Investment Property

   Loan amounts: $50,000 to $2,500,000.

   No Income (stated) Verification option available.

   Fully assumable mortgage.

   15, 30 and 40 year loan terms available.
1-4 unit residential property.

   No Doc Loan

In a speech to a credit union group, Fed Chairman Alan Greenspan questioned whether fixed-rate mortgages were the most cost-effective means of financing a home purchase. He said "American homeowners clearly like the certainty of fixed mortgage payments" but pay several thousands of dollars a year for the benefits.

Greenspan said homeowners "might have saved tens of thousands of dollars had they held adjustable-rate mortgages rather than fixed-rate mortgages during the past decade"

Greenspan noted that if homeowners are "willing to manage their own interest-rate risks, the traditional fixed-rate mortgage may be an expensive method of financing a home." Feb. 24, 2004

What is the most important feature of an (ARM) adjustable rate mortgage? The monthly index which determines it's rate. A steady and stable index protects the borrower from rapid increases. Volatile indexes are risky and do not protect the borrower. An example of a "volatile" index would be the 12-month treasury, 6-month libor, and the 6-month CD. The Option Index (MTA) is more stable and steady.

The annual cap is a 7 1/2% "payment" cap. The payment cannot increase or decrease in any year by this dollar amount. In other words, it is the equivalent of less than 3/4% annual interest cap. The lifetime cap for owner occupied property is 9.95%.

Minimum payment will result in deferred interest. Interest only payments do not reduce principal. Payment minimums are recalculated annually. Monthly Arm index (MTA) changes affect the interest rate.

Information is based on interest rates effective 9/08/2005 with a fully indexed rate of 5.91% and APR of 5.93%. Start rates, interest rates, payment rates, data and program guidelines are subject to change without notice and are not guaranteed. This is a brief outline with basic information only. Other restrictions and minimum loan amounts apply. Borrower should contact Florida Mortgage Corporation for details and full written disclosures.

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