     Jack Turner (Procare) | Wednesday, January 17, 2001 - 09:01 pm 
What is your opinion of a MTA mortgage loan?
I am somewhat confused about this type of loan, but would appreciate any advice or opinions.
I was told that as long as I have a very large savings, and because I am self employed, that I can easily qualify for this type of mortgage loan.
I do have the 200.00 paid judgment on my credit, but otherwise, my credit is pretty clean. I am going to dispute the judgment, because I paid this after receiving the notice, and the guy who placed the judgment, went to the judge himself to have the judgment vacated. This was placed on my credit very recently, but was paid in full after receiving the judgment. My credit report says that it was reported on 05-00, but I have copies of Sept, and Nov. credit reports, and it is not on there. I don't know if I can get it off, but I at least have proof that it has been paid. If it is not removed, the bureaus will at least have to report the judgment as paid.
Thanks for your help. |
| Don Semler (Dsemler) | Thursday, January 18, 2001 - 05:32 pm
Unless you are buying a very large house and do not want to pay it off but instead maximize interest, I would probably ovoid them.
Most MTA are very similar to COFI loans. You get a real low into rate for 1-3 months then your payment stays the same but your interest fluxuates either monthly or every couple of month. These loan have a great potential to negatively amortize if not handled properly.
With fixed rate being very low, I would lean away from them unless you fully understand how they work. That said, I do have a loan like this on a rental unit. It's worked out well for the most part. However, the current rate is now 8.5% so I'm paying obove market now but have paid much lower than market for a while. I've had it for about 9 years |
