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| to 80% LTV Start Rate % |
80.01-90% LTV with PMI Start Rate % |
90.01-95% LTV with PMI Start Rate % |
APR | Margin |
| 1 Month MTA: | ||||
| 1% | 2% | 3% | 4.48% | 2.78% |
| 3 Month MTA: | ||||
| 1.75 | 2.75 | 3.75 | 4.58 | 2.88 |
| 6 Month MTA: | ||||
| 4.45 | 4.825 | 5.575 | 4.45 | 2.75 |
| 12 Month MTA: | ||||
| 4.95 | 5.45 | 6.05 | 4.65 | 2.95 |
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Life Cap: 9.95%. 1 year prepay penalty included (able to be waived). |
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About the "Monthly Treasury Average" a.k.a.
"12-Month Moving Average Treasury Index" or "MAT":
The MAT is one of the newest ARM indexes. It is the 12 month average of the
monthly average yields of U.S. Treasury securities, adjusted to a constant
maturity of one year. The MAT is calculated by taking the average of the
previous 12 monthly values of the 1-Year Constant Maturity Treasury (CMT).
Since the MAT index is an annual average, it is said to be more steady than the
1 Year CMT index that many ARM's are based on. The CODI and MTA indexes
typically fluctuate slightly more than the 11th District COFI, though their
movements track each other very closely. Many people like the MAT because
it is said to be more stable than the CMT because it is based on a 12 month
average. This should result in less of a sudden jump in a rate and payment
shall rates go up dramatically. If rates drop dramatically, that would be
the downside of having an MTA ARM. With rates being so low, many people
believe the risk is for an eventual increase in rates and this index can be
advantageous. Basically, this index, and the affected mortgage
payment, would not react as quickly to market movements as a CMT ARM mortgage
would.
Notes:
Rates assumes a purchase money mortgage with loan amount of >= $225,000.
Call for other terms (610) 326-2099.
Rates quoted are for 60 day lock.
40 year term: Add .5% to start rate and .07% to Margin.
Stated Income: Add 25% to Margin with credit score <680.
No PMI or 2nd home: Call us for adjustment to rate.
Margin + Index = Fully adjusted rated after start rate expires.
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