WaMu offers unprecendented mortgage product

NEW -> Contingent Buyer Assistance Program
muzie_IHB

muzie_IHB

New member
<p>You guys will love this.... <a href="http://biz.yahoo.com/bw/070426/20070425006488.html?.v=1">http://biz.yahoo.com/bw/070426/20070425006488.html?.v=1</a></p>

<p>"Customers can choose between fixed and variable rates, interest-only or fully amortized payments as their financial needs or market conditions change without ever reapplying. Furthermore, borrowers do not need to refinance in order to tap into their home equity to finance home improvements or other costs such as college tuition or to pay off high-interest rate debt. <strong>As</strong> <strong>principal payments are made, the available credit on the equity line is increased for reuse</strong>, making WaMu Mortgage Plus one of the most innovative, lowest cost and most flexible mortgage products available."</p>

<p>It's like magic! You earn 1$, you pay 1$ to the bank and 1$ to yourself on every mortgage payment.</p>

<p> </p>
 
Wow, let's make it even easier for folks to pull out their equity and blow it !!!! This is a pretty innovative product though. Read about all the tack on fees in the small print though.
 
Seems like it would be an interesting product for <strong>those that know what they're doing</strong>. Considering the sheer number of FB's out there, this won't be a good thing when unleashed on the public...
 
<em>"Seems like it would be an interesting product for <strong>those that know what they're doing</strong>."</em>





I don't know if a distinction can be made here. If you truly know what you are doing, you should never been in need of making less than the fully amortized payment or borrowing against your equity. It only becomes necessary when one isn't properly managing their savings or they have purchased too much house.
 
<em>"I'm still waiting for the make no payments option loan."</em>





I heard they are saving that one for the next bubble. I also heard they were going to start the "pay you" loan. It is a negative amortization loan where they make <strong>you </strong>periodic payments which are added along with the interest to your principal balance. As long as houses increase at the Gary-Watts-15%-in-the-bag rate, everything works out fine.
 
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