-> Additional Information about 12MAT
Question
Answer
What is “Current MAT Index”?
MAT – average of the past 12 monthly values of the Constant Maturity Treasury (CMT). It is one of the least sensitive to interest rate fluctuation. Look at the historical MAT rates for the past 2 years:
MAT has a slow reaction for the fluctuations in the market due to being an average of the past 12-month, and has been declining in the past 18 month. It changes only once a month.
You can see the trend of MAT (sometimes called MTA) index at http://www.nfsn.com/library/mta.htm#graph
Explain “Margin”?
Margin, unlike the index, stays constant over the life of the loan. You can reduce margin by paying points, if you have the funds to do so. A point equals to 1% of the total loan amount. If your loan amount is $100,000, then a point is equivalent to 1% or $1,000 and your Margin will be lower (please see our rates for Margin and Points Schedule). It is a one-time fee that you may pay at the time of borrowing the money. You may not reduce the margin once the loan has been assigned to you.
How much can I borrow?
You can borrow up to 95% of the value of the property or the purchase price using 12 MAT Loan program for owner occupied properties. Interest rate will not change, however the starting rate will be set higher.
Can I buy Non-Owner Occupied (Investment) properties using 12-MAT?
Yes, you can. Please contact us for a specific quote, relating to your investment property.
Can I refinance with the same low rate later?
Yes, you can. You can refinance and benefit from the same low starting rate.
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Loan Program