WaMu has a new mortgage loan out that seems to make a lot of sense. Here is the jist of it from CNN Money:

But if they decide to stay in town longer, they can switch the terms of their variable-rate Mortgage Plus loan to a fixed rate.

See full article here.

I’m curious how they may be trying to make this work. I consulted in the mortgage-servicing sector for almost a year a few years ago, so I can’t quite understand how the loans would get sold in the back end? I guess you just price the loan with this increased variability.

I think a lot of people can benefit from this loan. I can see first time buyers, and professionals on salaried income benefiting from it the most.

I’ll try to follow up with more information tomorrow after I talk to some folks at WaMu.

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