12 MAT vs. Interest Only Mortgages.

There's no doubt the 12 MAT, pick-a-payment mortgage is one of the hottest mortgage programs going. At Mortgage Match, inquiries about this mortgage program are increasing daily. However, many of the prospective borrowers seeking 12 MAT mortgage information would be just as well off with an interest only mortgage, and perhaps even more so with a zero down, interest only mortgage.

There are several similarities between these two programs. First, both mortgages revert to a full principal and interest mortgage after a set period. Typically, this set period is 5 years, but it can be longer or shorter depending on the borrower's profile and financial goals. Next, both programs give the borrower payment options every month. While the 12 MAT may seem it has greater flexibility than a straight interest only mortgage, the options providing the borrower with choices in paying principal and interest payments over 30-year or 15-year terms are actually available with both mortgages.

What the interest only mortgage lacks is the ultra-low "start rate", which can be as low as .95%, but more about this later.

Another similarity in both mortgage programs is their lack of desirability as long-term mortgages. Most smart borrowers who are obtaining these mortgages have plans of keeping them for 3-5 years, and replacing them either through refinancing or the sale of the property. Neither of these mortgages are really suitable as mortgages a borrower wants to keep for 10 or more years.

Both mortgages provide the borrower with high LTVs (Loan-To-Value Ratios). In fact, borrowers can get up to 100% financing with either program. However, going after a straight interest only mortgage will give most borrowers far more choices in lenders' programs... since there are far more lenders offering zero down, interest only mortgages than there are lenders doing 100% 12 MATs. This greater choice will usually result in a lower ARM rate for the straight, interest only borrower as well.

Now, back to the low start rate... this is what provides the real attraction to most borrowers for the 12 MAT. This low, start rate translates into equally low mortgage payments. However, it should be noted, this low start rate may also provide negative amortization. Because, the low payments based on the start rate won't be covering the mortgage's required interest payments. So, it could be hazardous to a borrowers' financial health to make only the start rate payment consistently, as this could put them "upside down" in their investment, and have them ultimately owing more than the property is worth. Indeed, this would be the wrong way to utilize a 12 MAT program, and most smart borrowers will avoid the mistake of only making the minimum payment requirements. But, it should be noted that an interest only payment on either program will never result in negative amortization.

Here's a short and simple summary and comparison between the 12 MAT and a zero down, interest only mortgage. Hopefully, the following may provide some insight as to what program better fits your needs and goals.

Credit Requirements:
12 MAT: Requires a minimum 620 midscore FICO for a 95% LTV mortgage.
Interest Only: Requires a minimum 570-580 midscore FICO for a 100% LTV mortgage.

LTV Availabilties:
12 MAT: The vast majority of 12 MAT lenders offer up to 95% LTV... a couple offer 100% LTV.
Interest Only: 100% LTV financing is fairly standard with this program.

Monthly Payment Options:
12 MAT: Provides 4 choices per month - Start rate, interest only, 30-year and 15-year terms.
Interest Only: Provides up to 3 choices per month - interest only, 30-years, and often 15-year terms.

Interest Rates:
12 MAT: Several ARM choices tied to several different indices.
Interest Only: Several ARM choices tied to several different indices. (Some borrowers may obtain better rates on the ARM portion with this program.)

Loan Amounts:
Both programs available up through Jumbo and Super Jumbo loan amounts.

There are finer points associated with both mortgage programs in terms of qualifying guidelines such as income documentation, reserves, and FICO scores. The best way to evaluate your match to either or both programs is to consult with a Mortgage Match Senior Loan Consultant.

To learn more about 12 MAT and/or Zero Down, Interest Only Mortgages, please go to The Complete Mortgage Guide by clicking on it.

Seller Carryback for Zero Down.

If you have little money and poor credit, it's still possible to buy either an owner-occupied or non-owner-occupied home by using the "seller carryback" strategy. This is a strategy which is more commonplace in the buying and selling of real estate than many people realize.

If you presently have no option for buying a home other than a zero down mortgage, you may have already discovered you're not able to qualify for a zero down mortgage, because your midscore FICO is too low. Usually, a FICO score under the 570 to 580 range will prevent a borrower from qualifying for most lender's zero down or no down payment programs.

However, the vast majority of mortgage lenders will accept FICO midscores down to 500 for less than 100% financing. Ordinarily, a borrower would need to have a downpayment to overcome a lower FICO score. And, this downpayment would need to be large enough to bring down the Loan-To-Value (LTV) ratio to 90% or less... meaning a borrower who need a downpayment of 10% or more.

Using the "seller carryback" strategy though, a borrower does NOT need a downpayment. In a seller carryback transaction, the seller agrees to a carry a second mortgage or note for a portion or a percentage of the purchase price. A small number of mortgage lenders will look at this carryback as instant equity for the buyer, and thereby view the mortgage as one having an LTV of less than 100%... even though the borrower is not bringing a downpayment to the deal.

To enlist the seller carryback strategy, there are two steps. First, a borrower needs to be preapproved for a new mortgage. By getting preapproved, the borrower will learn how big or how much of a seller carryback will be necessary to obtain a mortgage on a "zero down" basis.

Next, after preapproval, the borrower can then set out to locate a seller who's willing to accommodate a seller carryback enabling the borrower to buy on a "zero down" basis. Locating such a seller is not as hard as it might sound. It's actually more complicated working with a mortgage lender who will offer a "zero down" mortgage on this basis. At Mortgage Match, arranging seller carryback mortgages for zero down deals is routine. Mortgage Match has the lender relationships to make these deals work. So, if you're a borrower with poor credit, who can't qualify for a traditional zero down mortgage right now, don't give up your dream of owning your own home. Get preapproved and follow the lead of a Mortgage Match Senior Loan Consultant to be on your way to buying a home with zero down. Get preapproved by clicking here.

Option Arm Mortgages' Advantages.

The hottest mortgage program on the market these days is the option arm mortgage. Also known as the 12 MAT or pick-a-payment mortgage, there are at least 4 good reasons why smart and savvy borrowers are flocking to these mortgages... they give the borrower 4 different choices for payment amounts each month.

The first payment choice can be based on a starting rate as low as .95%. The second payment choice can be based on an interest only option. The third payment choice can be based on a principal and interest payment amortized over 30-years. And, for those who want to build equity faster, or just have the money available, the fourth choice is a principal and interest payment based on amortization of your mortgage over a 15-year term. Essentially, the option arm gives borrowers flexible options each month to manage their cash flow and monthly budget with more control.

The best way to put an option arm mortgage to work for you, is to talk with an option arm expert who can custom design a program based on your income, loan amount, monthly debts and future housing plans. To speak with a Senior Loan Consultant at Mortgage Match to determine how an option arm mortgage might work best for you, simply call direct and toll-free, 1.888.767.1921. Or, to arrange a free phone consultation online, simply click here.

And, for the latest, most organized and easiest-to-find information about option ARMs and all other innovative mortgages, please click here.

600 FICO Stated Income Mortgages.

Borrowers can now qualify for a zero down, interest only mortgage on a stated income basis with a midscore FICO as low as 600. This 100% financing opportunity is provided through Mortgage Match in the popular 80/20 combo. No earned income documentation is required, so Mortgage Match streamlines the process of buying a home with no money down, and eliminates some of the paperwork hassle.

Find out how Mortgage Match makes it easier for you to obtain a mortgage by calling one of our Senior Loan Consultants with your questions at 1.888.767.1921. Or, start the process and get preapproved for your new mortgage by clicking here and completing our easy, less-than-a-minute, online inquiry form.

Rapid Refi for Fast, Easy Refinancing.

Skip the paperwork! With Mortgage Match's new streamlined RapidRefi Program, borrowers simply state their income, and qualify for high, full doc LTVs and loan amounts. No earned income documentation is required for LTVs up to 100% on rate and term refinances, or cash-out refinances. For more information, just click here.

Non-Permanent Resident Aliens, Foreign Nationals.

Mortgage Match can assist borrowers who are either non-permanent resident aliens or foreign nationals in obtaining mortgages for the purchase or refinance of U.S. properties. Here are some of the basic guidelines for each...

NON-PERMANENT RESIDENT ALIENS
A minimum time left on the VISA is not required. However, if less than six months remains, the borrower must furnish a letter verifying his or her intent to remain in the U.S., along with a copy of the approved application for extension of the visa. Borrowers in this category must have a 2-year work/credit history along with a social security number.

Borrowers who possess the appropriate credit profiles and ratings may borrow up to 100% of the purchase price on a full doc or stated income basis. With refinancing of existing mortgages, cashout is allowed as well as up to 95% LTV.

FOREIGN NATIONALS
Borrowers in this classification will need a passport, social security number, tax ID number or W-8 form. No Income Verification and Full Doc mortgages up to 80% LTV are offered on second homes and investment properties.

As these can be complicated programs, prospective borrowers in both classifications should consult with a Mortgage Match Senior Loan Consultant to learn more about how they may qualify for mortgage financing, and what special programs are available. Please call toll-free and direct at 1.888.890.5625. Or, to arrange a free phone consultation and discuss your specific situation, click here and complete the fast form.

See also...
Non-Resident Alien Mortgages.

Super Jumbo Mortgage Loans.

Super jumbo mortgage loans are one of today's most popular loan programs. However, finding a mortgage professional who understands the diversity and availability of jumbo loan programs can often be a very difficult task. Unfortunately, for jumbo and super jumbo loan seekers, very few of the loan consultants they are likely to come in contact with, will really know their way around the super jumbo "beat". It takes an experienced specialist to get these loans done.

Mortgage Match is the ultimate destination for anyone needing truly reliable and knowledgeable assistance with low or zero down, interest only, fixed or adjustable rate jumbo mortgages. With the largest database of mortgage investors who concentrate solely on the super jumbo market, you will be sure you have encountered a jumbo loan professional you can count on to get your loan closed as economically and efficiently as possible. To learn more about the jumbo and super jumbo loan programs available, and how you might get preapproved for the one that best fits your needs, simply click here. Or, call now to speak with a Senior Loan Consultant at 1.888.767.1921.

See also...
Jumbo and Super Jumbo Loans Explained.