Board Topic: M.A.T. 12 month Loans
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M.A.T. 12 month Loans

Posted by: Ed Fernandez Sep 5 2004, 10:32 PM
Does anyone have any info on 12 month MAT loans? Specifically can they be used for investment property and are there any specific requirements ? Thanx,

Posted by: loanuniverse Sep 6 2004, 10:33 AM

I think that MAT stands for "Moving Average Treasury" and it reflects the 12 month average of the average yields of US Treasuries adjusted to a constant maturity of one year. I also think that this is more of an index used in ARM for consumers.

I have not seen it used in commercial real estate loans. Long-term financing for commercial real estate involves prime or the 5-Year T-Bill usually.

Posted by: Ed Fernandez Sep 6 2004, 01:51 PM
I own a couple of houses, 3 family and 4 family and I am in contract to buy another 3 family in which I am undecided if I want to hold on to it or flip it. I was thinking that the MAT is perfect because it is fixed at 1.25% for the first year and then I have 3 decent options for the second year, in case I decided not to flip it. I'm just wondering if this loan is strictly for primary home owners or if investors can also take advantage.

Posted by: loanuniverse Sep 6 2004, 02:10 PM
I have never seen it used by a bank-lender in commercial real estate.

Posted by: Commercial Lender Sep 6 2004, 09:45 PM
Yep, as the admin said, i have never seen in used in commercial lending either. Prime and more recently LIBOR seem to be more prominent.

Posted by: Ed Fernandez Sep 6 2004, 09:51 PM
I thought commercial property is referred to a building consisting of 6 families or more . Or do you mean commercial in the sense that the home will not be occupied by the buyer ?

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