Merix has just launched a new product for borrowers that aren't sure wether they should choose a fixed or a variable rate mortgage. If you are interested in this product please feel free to contact me anytime!
Here are the details:
The MERIX 50/50 Wise Mortgage
"...the wise choice in today's economy"
Don't choose between Fixed and Variable. Choose Both!
- 50% of mortgage amount is at current 5 year fixed rate pricing (now at 4.09%)
- 50% of mortgage is at current 5 year ARM pricing (now at Prime +.40%)
Ideally suited for:
- Customers who are unsure whether to go Variable or Fixed. This product eliminates the biggest dilemma facing mortgage borrowers in today's economy.
- Customers who want a low interest rate and are more risk-averse than a typical adjustable rate mortgage client. The weighted average interest rate on this mortgage is approximately 3.38% given today's current pricing! And only 50% of the mortgage is subject to interest rate risk.
- Only one charge is registered (conventional charge, not collateral).
- Each portion operates independently of each other in terms of payment frequencies, prepayment privileges, and prepayment penalties.
- Each portion has the usual 20/20 prepayment privileges.
- The adjustable portion can convert to a fixed rate at any time without penalty, HOWEVER, the term cannot be extended.
- 120 days rate holds on purchases, 60 day refinances.
- No Transfers/Switches permitted.
- No pre-approvals offered.
- Max amortization is 35 years
- Max LTV is 95%