Try to think out of the 30-year mortgage box. This is not a typical loan program that majority of the people use, and yet it could save people thousands of dollars a year if they just took some time to understand how it could benefit them. The program has been used for 10-12 years and yet only a fraction of the people are buying and refinancing using 12 MAT. Typical Loan Agents will not bother explaining how does the program work or why people might want to use it, it is much easier for them to “sell” 30-year fixed rate and receive their commission.

0FeeMortgages.com wants to show our clients different ways of saving money, besides we have the ability to send the message to thousands of people per day.

The first 5-7 years of 12 MAT are the most important years. It is the time that you have an option of getting additional cash flow compared to a 30 year fixed loan.

The following example illustrates difference in the first 6 years of comparing 30-yr fixed at 6%, and 12 MAT at 1.25% starting rate. Loan Amount in the example is $400,000.

Years | 30 Yr Fixed Payments Year | 12 MAT Payments Year | Saved per Year
1 | $28,778.43 |$15,996.08 | $12,782.35
2 | $28,778.43 |$17,115.81 | $11,662.62
3 | $28,778.43 |$18,313.91 | $10,464.52
4 | $28,778.43 |$19,595.89 | $9,182.54
5 | $28,778.43 |$20,967.60 | $7,810.83
6 | $28,778.43 |$22,435.33 | $6,343.10

Total Difference : $58,245.96


You have unlimited power of using saved money, you can invest it in 401k, stock market, income property, or just simply pay off the loan faster.