Washington Mutual Mortgages - Multipay Home Loan
Yesterday we discussed Washington Mutual mortgage rates for various WaMu mortgages. However, we failed to mention the Washington Mutual Multipay Home Loan. The Multipay Home Loan is one of the most unique Washington Mutual mortgages.
The Multipay mortgage is an adjustable rate mortgage that gives you an initial fixed interest rate with the added bonus of being able to make flexible payments. The initial fixed interest rate for these WaMu mortgages lasts for five years. After this initial five year period the mortgage has an adjustable rate based on the LIBOR index.
The really unique part about these Washington Mutual mortgages is that for the first ten years there are four different payment options that you can choose. The first option actually allows you to pay even less than the accumulated interest. The second option is to make it an interest only mortgage. The third payment option on the Multipay home loan is to pay both the interest and full principal. The fourth payment option is to make the loan a 15 year loan.
The WaMu Multipay mortgage is designed to help new home owners with the first few years of home ownership. The first years of being a home owner are often the hardest. Home buyers know that their salaries will increase as they get their annual raises which will make their mortgage payment easier to pay a few years down the road. However, for the time being their cash flow might be low. These Washington Mutal mortgages can help these first time home buyers.
The WaMu Multipay home loan is a little risky due to the fact that you can choose not to pay down the principal and after five years the interest rates can go up. While this can be good for a new home owner, you really need to make sure that you will be able to afford the home loan when these Washington Mutual mortgages become adjustable rate mortgages. If you use Washington Mutual online banking for all of your banking needs, you might want to consider this mortgage too, but be careful.