The 12 MAT loan has a very stable index (the average over a 12 month period of one year Treasury constant maturities). This averaging procedure means the index fluctuates less than any other index we offer. In turn, your rate is more stable.
This loan offers four, flexible payment options that you can choose from each month, giving you maximum control over your finances.
Payment Options:
- Minimum Payment
The lowest payment option, which will help you save the most cash each month. - Interest Only Payment
Will keep your payment low, and pay all interest due.* - Fully Amortized Payment
Will reduce your principal, and pay your loan off on a thirty year term.* - 15 Year Payment
A higher payment, but will pay your loan off on a fifteen year term.
* Applicable only if these payment amounts exceed minimum payment option.
This loan is all about choices.
You choose your monthly payment every month. You can make the fully amortized payment, and your balance will decrease like any other loan (or make a 15-year payment and own your home in half the time).
You can save cash in any month by making the interest only payment, and your balance remains the same. Or, you can save even more cash by making the "minimum monthly payment", and the interest you don’t pay will be added to your balance.
There are risks with this type of loan. Because your "minimum" monthly payment may be less than the interest rate charged on your loan (after the first change date), your loan balance could increase. However, your maximum loan balance increase is limited to 110% of your initial loan amount. Every five years, your minimum payment will be recalculated based on the unpaid principal balance, and re-amortized for the remaining term of the loan, which could mean higher monthly payments. Between these five year adjustments, your minimum payment will not increase more than 7.5% annually. For details, please read and review the program disclosure, which will be provided to you within three days of your complete application.
If you are self-employed, anticipate higher income in the next few years, want to maximize your tax write-offs for mortgage interest, or have seasonal or annual increases in income, this could be the loan for you. Speak to a us by calling, toll-free, 1-888-360-3337 to get more information on the 12 MAT Adjustable Rate loan from 0FeeMortgages.
| Index | 12 month average of Treasury securities with a constant maturity of one year |
First Adjustment: | At the end of the first full month |
| Cap Per First Adjustment: | None – same as life cap |
Periodic Adjustments: | Monthly |
| Cap Per Periodic Adjustment: | None – same as life cap |
Payment Cap: | 7.5% annually, subject to recast every five years |
Lifetime Cap: | 9.95% Please Note: The life cap may be higher for second homes, non-owner occupied, high-rise condos, and multi-unit properties. |
Floor: | None |
Assumable: | Yes |
