|View printer-friendly version|
|Washington Mutual Introduces New 5/1 CMT Interest Only Loan; New Loan Allows for Lower Monthly Payments and Greater Financial Flexibility|
|SEATTLE, Sep 6, 2001 (BUSINESS WIRE) -- Washington Mutual Home Loans and
Insurance Services Group announced today it will offer a new portfolio product,
the 5/1 CMT Interest Only loan.
This product has interest-only payments for the initial 5-year fixed period with a 30-year term. The 5/1 CMT loan is designed with homebuyers in mind who are planning to stay in their house for a relatively short period of time. Washington Mutual expects this loan product to address the needs of many borrowers as the average home loan in America is held for 6 years and this product allows for lower monthly payments.
"Our new 5/1 Interest Only loan demonstrates WaMu's ability to leverage our portfolio lending power to meet the needs of our customers in an incredibly short period of time," said Eric Spence, executive vice president of Production for Washington Mutual's Home Loans & Insurance Services Group. "This clearly demonstrates our competitive advantage and attention to the needs of the market."
The 5/1 CMT Interest Only loan is available for both conventional and jumbo loans, up to $2.5 million, and has a maximum loan-to-value ratio of 80 percent. Interest-only payments are in effect for the first five years, after which the payment adjusts to a fully amortizing principle and interest payment based on the interest rate in effect at the time of the adjustment, the outstanding loan balance at that time and the remaining term of 25 years. Subsequent adjustments to the interest rate and payment will occur at 12-month intervals.
"The 5/1 Interest Only loan rounds out WaMu's ARM (adjustable rate mortgage) product line, offering everything from traditional ARMs, Option ARMs with four payment selections, to this interest only ARM with payments at a fixed rate for five years," said Spence.
With a history dating back to 1889, Washington Mutual (NYSE:WM) is a national financial services company that provides a diversified line of products and services to consumers and small- to mid-sized businesses. At June 30, 2001, Washington Mutual and its subsidiaries had consolidated assets of $229.30 billion. Washington Mutual currently operates more than 2,300 consumer banking, mortgage lending, commercial banking, consumer finance and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamu.com.
CONTACT: Washington Mutual P. Kevin Horn, 206/377-3268