12 MAT mortgages… often misunderstood.
Written by on April 20th, 2005 in General.
12 MAT (MTA) and/or Pick-A-Payment mortgages just may be the most misunderstood and misrepresented mortgages there are right now. Their 1% start rate which is available to many borrowers is “NOT too good to be true”. However, this 1% start rate can allow negative amortization. This is only a problem, if this is the only payment the borrower makes every month. The interest only option payment, which is one of the other four payment choices available every month, NEVER provides negative amortization.
Negative amortization occurs when the payment made does not even cover the interest being charged on the loan. This can put borrowers “upside down” on their mortgage with their unpaid mortgage balance growing to an amount that’s more than the property is worth. Obviously, this is something no borrower wants to have happen.
Despite this potential downside of the 12 MAT though, it’s a great mortgage. In fact, it’s arguably the “world’s best mortgage” program going right now. The beauty of it is… that with all it’s available payment options, it enables borrowers to design their own mortgages, and exercise a lot of control over their cashflow.
It may even enable them to save money or make money on other investments. Now, before this gets sounding too complicated or too sophisticated, be assured it’s not. It is important though that you fully understand the power of the 12 MAT, and know how to use it.
Unfortunately, not all mortgage professionals who are able to represent the 12 MAT as a mortgage product really know the “in’s and out’s” of this program. At Mortgage Match, we’re pleased to have Senior Loan Consultants who are extremely well-versed in the 12 MAT, and who can help you structure the 12 MAT to work best for you… and your financial well-being.
It’s strongly advisable to consult with a 12 MAT expert to determine how this mortgage should work for you. For immediate access to highly credible 12 MAT expertise, just call 1.888.890.5625. To schedule a free, no obligation phone consultation, please click here and include a comment that you’re interested in the 12 MAT program.
For more on 12 MAT, pick-a-payment mortgages see…
New 12 MAT LTVs and FICOs.
Now there’s a zero down 12 MAT.
12 MAT mortgages… often misunderstood.
Libor vs. MTA vs. COSI and more… common indices for 12 MATs.
The 12 MAT… for mortgages with more control.
The 12 MAT in depth.
Refinancing with the 12 MAT