mcs328

I'm trying to refinance my condo since my line of credit finance charge has gone up to 6%+. My Minimum payments went from 86 to 146 a month. Since my condo is worth 230K - 250K and I owe 185K, I was thinking I can consolidate and just have one loan without the PMI and still have the same 5.875% interest.

A co-worker of mine introduced me to MTA loans which very interesting. The interest rate is based on the average Treasury index in a moving 12 month window plus some standard point. The standard add on is 2.4 and the index is at 2.5 I think so the interest rate is 4.9 which is below the current interest rate. Any jumps in the Treasury index won't be felt as much since it's averaged. So it seems better than an ARM. Another plus is there are 4 payment options every month. Interest only payment. Principal and Interest (based on 30 or 15 yr fixed) and 1% (This is when you have low cash flow and the difference between 1% and the interest rate is noted and you have to pay it back).

Anyone been offered this type of loan? It looks like an ARM based on a different rate and a flexible payment option.

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