WaMu has a new mortgage loan out that seems to make a lot of sense. Here is the jist of it from CNN Money:

    But if they decide to stay in town longer, they can switch the terms of their variable-rate Mortgage Plus loan to a fixed rate.

See full article here. 

I'm curious how they may be trying to make this work. I consulted in the mortgage-servicing sector for almost a year a few years ago, so I can't quite understand how the loans would get sold in the back end? I guess you just price the loan with this increased variability.

I think a lot of people can benefit from this loan. I can see first time buyers, and professionals on salaried income benefiting from it the most.

I'll try to follow up with more information tomorrow after I talk to some folks at WaMu. 

 
Post is included in group: Arizona Luxury Homes
Post is included in group: Gilbert Arizona Real Estate Connection

4 Comments on Switch from ARM to Fixed - the next innovation in home financing

APR
30
2007
 As long as I can remember, you always had the opportunity to switch from an ARM to a fixed loan.  Otherwise, ARMs would not make any sense.  Did we go through a period when I wasn't paying attention that you couldn't convert your ARM to a fixed rate?  I just thought that some people forgot that they had the option.
11:48pm • #1
MAY
01
2007
108,754 Points 4 Featured Posts Localism Sponsor Attended Rain Camp
Option to fix an existing arm?  Please -  do tell us how.................  LP
12:30am • #2
122,952 Points Localism Sponsor

Yeah, this one I have to hear!

- Tchaka 

 
3:06am • #3
4 Featured Posts

Roger,

I wasn't aware you could do this on an ARM. Thanks for sharing.

I had a pretty busy day today. I'll try to update this post soon.

Thanks, 

Shailesh
10:36pm • #4


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Aimee Ghimire

Phoenix, AZ

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Phoenix Home Loan Expert (www.aimeeloans.com)

Address: 1201 S Alma School Road, Ste 8950, Mesa, AZ, 85210

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I am a mortgage professional serving the Greater Phoenix market. This includes Phoenix, Mesa, Gilbert, Scottsdale, Chandler, Tempe and surrounding communities. I am with PrimeLending. When it comes to Arizona mortgage loans I have the expertise, the experience and the professionalism you should expect. I have been working in the Arizona home loan market for almost five years and have a history of satisfied borrowers.



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