Find your Best Fit With Wamu Mortgage
Article by Mortgage Guru
Washington Mutual Mortgage popularly known as WaMu mortgage is now owned by JP Morgan Chase and they offer full spectrum of mortgage products. With the home prices at an all time low and the interest rates down, this could be a perfect time to make adversities into opportunities and make the most of the current market with WaMu Mortgage. Washington Mutual has an impressive range of fixed rate mortgages (FRM), adjustable rate mortgages (ARM) and loans for refinancing. Most lenders may offer one or two versions of fixed rate but WaMu goes an extra mile where they provide a spectrum of mortgages to suit to the different requirements of its clients. Let us first have a basic understanding of interest rates and how they affect your monthly payments over a period of time because it is a known fact that the interest rate is the deciding factor when mortgage related decisions are to be made. Broadly, there are two types of interest rates, fixed rate mortgages (FRM) and Adjustable Rate Mortgage (ARM). In case of FRM, the repayment of debt is made in equal monthly mortgage payments over a specified period of time. And the day you purchase your loan you lock in at that interest rate. Your loan will be the same interest rate irrespective of the any rise or fall in the interest rate. While with an Adjustable Mortgage Rate (ARM) the initial rates are usually lower than market rates but eventually after the fixed rate period is over the rate adjusts to the ongoing market rate. So when rates begin to fall, you do not need to refinance in order to see your payments go down; they will automatically be recalculated at the new lower rates. ARM is a good choice to make if you know your income will be rising or know you will be selling the house in less than five years. On the other hand FRM is good for those who like predictable payments, monthly payments, especially first time home buyers. WaMu mortgage rates are known for their competitive rates and wide variety of mortgage options both in FRM or ARM to accommodate different cliental requirement. For instance, low down payment FRM option is designed for applicants who have a steady and sufficient income but do not have the traditional twenty percent down payment available. Again they have the forty year amortization where the fixed rate mortgage loan is amortized over a forty year period, making the monthly payments less.Again all Washington Mutual ARM are based on the Libor Index. Washington Mutual Mortgage has different options other than the traditional ARM which is amortized over a thirty year period. ARM may come with different terms like 5/1, 7/1 and 10/1 where the interest rate is subject to change after the first five, seven or 10 years of fixed rate.You may refinance your mortgage to avail the current mortgage rates or you may refinance your FRM to ARM, too. When you are refinancing your mortgage, it is quite similar to applying for a mortgage loan. Your credit history will be evaluated, your finances will be examined, and you will be required to get an appraisal. The important fact to note is that refinancing your home will not be beneficial if you don’t take time to find the right lender and the right loan. WaMu mortgage refinancing offers refinance options along with home equity loan and equity line of credit.There are many benefits of refinancing your mortgages. So it is important that you research the processes and see if it is worth during this season of time for you.You may take the help of consultants who would help you evaluate the option and find the most appropriate design suitable for your situation.
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