SEATTLE—(BUSINESS WIRE)—April 26, 2007—A defining moment in the
evolution of the home mortgage has occurred, providing consumers
unmatched flexibility, value and simplicity.
Today, WaMu (NYSE:WM) introduces WaMu Mortgage Plus(TM), a home
loan product that combines a first mortgage AND home equity line of
credit into a single loan. With an unprecedented bundle of features,
including no closing fees, instant access to equity and the ability to
reset the interest rate on the mortgage twice a year, the WaMu
Mortgage Plus home loan is likely to be the only loan a borrower will
ever need.
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. As principal payments
are made, the available credit on the equity line is increased for
reuse, making WaMu Mortgage Plus one of the most innovative, lowest
cost and most flexible mortgage products available. (For more
information about account features, see below.)
WaMu expects its innovative product to set a new standard for home
loans. "WaMu Mortgage Plus allows you to take advantage of
opportunities as they arise with built-in flexibility that you won't
outgrow," said Steve Rotella, president and chief operating officer of
WaMu. "We developed WaMu Mortgage Plus with the consumer in mind and
expect it to raise the bar for the industry — just like we did with
our WaMu Free Checking(TM)."
David Schneider, president of WaMu's Home Loans group, noted that
WaMu Mortgage Plus puts the customer in control of their mortgage.
Consumers who choose WaMu Mortgage Plus when purchasing a new home
or refinancing an existing one are able to adjust their loan terms
after origination twice within the calendar year as market conditions
change. Consumers can move from one fixed rate to another in about 15
minutes over the phone or in person at a Home Loan Center or Retail
Banking Store. The first reset is free, additional resets are a flat
fee of $250 (up to two per year), and consumers can always move from a
fixed rate option back to a variable rate at no cost. And, one
combined product means only one set of loan documents and one
application process.
[The price for this product's flexibility comes at a higher rate of interest, which WaMu estimates to be no more than half a percent above average.]
"WaMu Mortgage Plus demonstrates our longstanding commitment to
provide customers convenient products that simplify their lives,"
added Schneider. "'Simple' isn't a word people associate with the home
lending experience, but we're not like other home lenders."
To further enhance the customer experience, WaMu will offer WaMu
Mortgage Plus online at WaMu.com.
Rotella affirmed that consumers not only are demanding value, but
greater flexibility and adaptability in their home loans. "People's
mortgage needs change over time, but what makes the most sense for you
now may be different in the future. WaMu Mortgage Plus gives you the
flexibility and control to make it happen," said Rotella. "Change your
interest rate. Change your fixed rate period. Change how much you pay
each month. Don't change your loan."
WaMu Mortgage Plus Account Features:
— No origination fees
— No closing fees for credit lines secured by a primary residence. We pay or waive typical costs and fees relating to opening the account, except for taxes, interest, fees not directly related to the credit transaction, or fees for additional products and services the customer voluntarily elects to obtain.
— No annual fee
— No cost to move balances from fixed to variable rates
— First reset from variable to a fixed rate, or from a fixed to another fixed rate is free; subsequent resets are $250 with limit of two resets per year
— No Private Mortgage Insurance (PMI) required, ever!
— No prepayment fee — Pay down the account to zero at any time without penalty (cancellation fee only if account is closed within the first 36 months; fee credited back to borrowers who purchase and finance a new primary residence using another WaMu Mortgage Plus home loan within 90 days)
— Flexible payment options — Multiple payment options offered, including interest only payments, interest and principal payments, and fully amortizing principal and interest payments over the term selected by the customer
— Built-in access to home equity — Equity becomes available for reuse as principal payments are made, and borrowers have the option to increase the line amount as their home value appreciates without having to apply separately for an equity product
— Convenient access to equity — Borrowers can access their home equity via checks, WaMu Mortgage Plus credit card (except CT and TX) and cash advances at any WaMu store or online at WaMu.com
— Financing — Ability to finance up to a maximum of 89.99 percent LTV, with loan amounts as high as $2 million
— Rates — Competitive interest rates offered on variable and fixed rate loan options, making the WaMu Mortgage Plus home loan a viable alternative to traditional home financing
Additional Important Information About Our WaMu Mortgage Plus Loan
Product
This first-lien line of credit product allows you to obtain both
variable rate advances and fixed rate loans.
The Annual Percentage
Rate (APR) for variable rate advances on lines greater than or equal
to $250,000 is as low as Prime Rate -0.51%, which is 7.74% as of
04/01/2007.
The APR as of the same date for fixed rate loans of at
least $250,000 is 6.55% for a five-year interest only fixed rate loan
option.
APRs quoted are available for our most creditworthy borrowers
who have combined loan-to-values (CLTVs) of up to 80%, and have loan
payments automatically deducted from a WaMu deposit account.
APR may
be higher for other loan amounts, CLTVs and credit qualifications.
Maximum APR is 18%.
Transaction fee of 4% applies to non-credit-card
advances of less than $100. A fee of 2% applies to each credit card
cash advance, or $2.00, whichever is greater. Card access not
available in CT.
There is a $250 fee to obtain each fixed rate loan,
however a fixed rate loan taken at origination has no fee and the
first fixed rate reset is free.
For credit lines secured by your
primary residence, we pay or waive typical costs and fees relating to
opening your account, except for taxes, interest, fees not directly
related to the credit transaction, or fees for additional products and
services you voluntarily elect to obtain. You will be required to
maintain property insurance on your residence at your own expense.
A
cancellation fee of the greater of $1,000 or 1% of the original credit
limit will apply if the account is closed within the first 36 months.
This account allows you to make minimum interest-only payments, which
will not be sufficient to repay principal outstanding on your line.
You will be required to pay the entire outstanding balance in a single
payment upon the earlier of account closure or maturity.
