CUMEX Mortgage Service Center Approved to Offer 40-Year Mortgages
LEXINGTON, Mass. - CUMEX Mortgage Service Center of Lexington, a division of Chittenden Corp. Burlington, Vt. and a provider of mortgage services to credit unions in Massachusetts, Connecticut and Vermont, was approved by Fannie Mae to offer 40-year mortgages through a program the housing Government Sponsored Enterprise is piloting and is only being offered through 16 credit unions nationwide. While a 40-year mortgage increases the length of the loan as well as the amount of total interest the borrower pays for the life of the loan, CUMEX says the product will appeal to first-time home buyers and current home owners interested in relocating to higher cost areas. CUMEX plans to begin offering the 40-year mortgage product starting in January 2005 through its retail, correspondent and wholesale outlets. CUMEX has also introduced an Interest Only loan program that allows borrowers to make lower payments in the earlier years of the loan. The Interest Only ARM is a variable rate product that offers an initial fixed rate period of 3, 5 or 7 years and annual interest rate adjustments for the remainder of the loan term. During the initial fixed rate period, the mortgage payment includes an interest only payment, plus any applicable escrows for taxes and insurance. At the end of the initial fixed rate period, payments will include principal and interest and will adjust annually at the time of the interest rate adjustment. There is no negative amortization. CUMEX is making the program available for single-unit residences and 2-4 unit properties.