MTA Loans :: MTA Mortgages :: MTA Adjustable Loan
Florida Mortgage Corporation offers you the very popular "Option Index" ARM mortgage with three payment options each month to manage your mortgage and cash flow.
Each month, you will receive a loan statement that lets you choose the payment amount that best suits your current financial needs. Pay the minimum amount to free up funds for other uses, or make larger payments for faster equity build-up.
MANAGE CASH FLOW:
UP TO THREE PAYMENT OPTIONS EACH MONTH
OPTION ONE: Minimum Payment - This option gives you more cash flow now and keeps your monthly payments manageable. Your initial monthly payment will be based upon your low initial interest rate.
OPTION TWO: Interest Only Payment - At those times when the minimum monthly payment is less than the monthly interest due, you can avoid deferred interest. Making an "interest only" payment does not increase or decrease the current loan balance.
OPTION THREE: Full Payment - This is the fully amortized payment. It is calculated each month based on the prior month's interest rate, loan balance and remaining loan term. It also pays all of the interest due and reduces your principal to pay off your loan on schedule.
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
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.
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 - 10.95%. 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.
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.
Start payment rates, interest rates, payment rates, data and program guidelines are subject to change without notice, and are not guaranteed. Deferred interest may apply. APR (Annual Percentage Rate) changes on a daily basis depending upon market conditions. This is a brief outline with basic information only. Other restrictions and minimum loan amounts apply. Borrower should contact Florida Mortgage Corporation for current details and full written disclosures.
MTA Loans - MTA Mortgages - MTA Adjustable Loan