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
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
CONTACT: Washington Mutual
P. Kevin Horn, 206/377-3268