ADJUSTABLE RATES:

12 MAT Pay Option ARM

What are the benefits of 12 MAT ARM?
· Excellent choice for borrowers who are self-employed or work on commission with inconsistent income because borrowers have payment options every month
· Helps maximize cash flow or defer interest to offset capital gains in a securities portfolio for savvy investing
· Works well for investment properties where rentals may produce an uneven monthly revenue stream

Why is 12 MAT ARM so flexible, yet stable?

Based on the Monthly Treasury Average (MTA), the 12 MAT is not affected by the volatility of daily interest movements. That’s because the MTA is a 12-month average of the monthly yields on U.S. Treasury securities. Each month the MTA index adjusts to reflect the previous 12-month average, thus avoiding the sharper fluctuations of other volatile indices.

Available Payment Options

Unlike fixed-rate products, the 12 MAT has a distinct advantage - 3 payment options. Similar to a credit card, each month you may choose from the following:
· Minimum Payment (start rate as low as 1.00%)1
- 1.00% start rate for all doc types (including NINA) <=80% LTV and owner-occupied
- 2.00% start rate for >80% LTV and all non-owner
· Interest Only2
· Fully Amortizing

1 Minimum payment may result in negative amortization, and is recast every 5 years or as often as the outstanding loan balance reaches 110% of the original loan amount.
2 Interest Only payments may not be less than minimum payment required.