The MAT 12 month Moving Average Treasury Index, commonly referred to as the MTA, is a very popular new ARM index based on the 12 month average of the monthly mean yields of United States Treasury securities, which are adjusted further to a constant maturity of one year. More simply put, the MTA is calculated by averaging the previous 12 monthly values of the 1 year CMT, which means that it is actually more stable than the more traditional 1 Year CMT index. The MTA or MAT index is very closely tracked to two other popular ARM indices, the CODI and the COFI (11th District), and has experienced an explosion in popularity due to its serving as the basis for the majority of Pay Option ARM cash flow adjustable rate mortgages. Like the COFI and CODI indexes, the MTA in 2007 to 2008 is at a 3 to 4 year high, meaning that borrowers with MTA or MAT index ARM loans may find it advantageous to convert their ARM loan to a fixed rate.

While it was previously impossible to obtain a fixed rate home loan which offered the minimum payment flexibility of Pay Option ARM type mortgage, we now offer a mortgage which is fixed for 30 years with payment options as low as 1.95%. This 30 Year Fixed Rate Cash Flow mortgage is our most popular refinance loan because it preserves the flexibility of the Option ARM while adding the security of a 30 year fixed rate, and is available to borrowers who need to borrow up to 80% of the value of their home or less.