Washington mutual home loans

Washington Mutual also known as WaMu. It was started in the year 1889 mainly to offer home loans and investment services for businesses and residents.

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Today along with the home loans they also offer consumer lending, credit cards and other financial services.
The headquarters of Washington Mutual is in Seattle. It has its lending centers and retail banking locations in 36 states. It has nearly 50,000 peoples as its employees.
In early 1990s WaMu remained as a Northwestern bank. In order to grow the company started buying the banks all over the country.

Washington Mutual started offering its first home loans from the year 1890 and still it is continuing to offer home loans. There are six kinds of home loans offered by Washington Mutual home lone scheme they are as listed below:

(1) Fixed-rate mortgage – This loan is offered in certain durations. The durations can be 15-years, 20-years, 25-years or 40-years. This loan is offered without a prepayment penalty and also it requires less documentation options. Some times private mortgage insurance (PMI) is required. It is capped at $3 million.

(2) Fixed-rate, interest-only mortgage – The Washington mutual home loan is offered in certain durations like 30 or 40 years. There is no need to pay prepayment fee. It is capped at $417,000. The documentation options required are less. Some times PMI is necessary.

(3) Adjustable rate mortgage – The Washington mutual home loan has an interest rate which may be fixed or variable. The duration of the loan is 30 years. It requires a pre payment fee. It is capped at $3 million. Some times PMI is necessary.

(4) Interest only mortgage – The interest rate is first fixed and then it is variable. The duration given is 30 years. Prepayment of fee is not required and it is capped at $3 million. The documentation option required is less and some times PIM may be required.

(5) WaMu Multipay – The interest rate is first fixed and then it is variable. The duration is 30 or 40 years. The prepayment fee is required for the first three years and it is capped at $1.5 million. PMI is required some times.
The PIM is an option because it is required only if the down payment is 20% less than the purchase price.

(6) WaMu Mortgage Plus – This is the most distinctive loan than the other loans offered by Washington mutual home lone. It gives a bundled and flexible service to the borrowers. In this loan the rates can be reset twice a year. The borrowers can switch from fixed rate to variable rate and vice versa. Changing from a fixed to variable will cost nothing but changing from variable to fixed will charge. There is no charge when the borrowers change from variable to fixed for the first time but from second time onwards they have to pay small charges. This is a good option for the borrowers who believe that there will be a drop in the interest rate. This loan is a package of home equity line of credit (HELOC) and combination mortgage. This loan is not available at present.

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