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June 16, 2006
Critics Aside, Thrift Says Its 50-Year Loan Is Popular
Since it unveiled a 50-year mortgage in February, Riverside, Calif.-based Provident Savings Bank says it has originated $30 million of the loans. Buyers can choose from a 50-year, fixed loan with a balloon payment due at the 30-year mark or a 50-year, adjustable-rate mortgage with fixed rates for a three- or five-year period. Chula Vista, Calif.-based Pacific Trust Bank says it can top the 50-year mortgage with its innovative mortgage product called Green Account, in which money is automatically withdrawn from an associated demand account each month. Borrowers watch their principal balances and monthly finance charges decline as more money--typically funds that would have been put into savings, money market or other non-demand accounts--is deposited in the demand account.
Posted by S. Germain at June 16, 2006 07:43 AM