Your New One Stop Mortgage?
There have been many changes in the mortgage industry since it’s beginning, and one thing is certain, there will always be change as long as there are people needing mortgages. Why? It’s simple, we all have different needs and circumstances, and the mortgage industry is always trying to find innovative ways to accommodate those needs. Here is a new one for you. Washington Mutual, Inc has recently introduced a brand new product they call Mortgage Plus. This product combines a first mortgage with a home equity line of credit (HELOC) and bundles it as one loan. There are only one set of documents to sign at closing, and one application process.
Once you have this mortgage, you can reset the interest rate, choosing between fixed or adjustable rates. You can alter your payment arrangements, choose an interest only option, or make fully amortized payments of both interest and principal. What this means is that you can adjust you loan terms after origination twice within the same calendar year. The first reset is free, and additional resets are a flat fee of $250, up to two per year. You don’t ever have to apply for a refinance, a 15 minute phone call, or visit to your lender is all it takes. Once your mortgage is paid down sufficiently, you can tap into that equity by writing a check, cash advance, or even use a credit card, in most states. You’ll need a minimum of 10 percent down, but Washington Mutual doesn’t charge an origination fee and waives various other costs you’d typically pay like appraisal and title fees. Your line of credit will continue to grow as you pay down your mortgage over time. On the downside, your interest rate will start off slightly higher, maybe half a percentage point. For most homeowners, this will be worth it, due to the added flexibility. It’s designed to make refinancing easier and help the lender to retain customers who might otherwise shop their loan elsewhere at refinance time. In all it would seem a win-win situation for all.
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