New Loan Puts Borrowers, Lenders and Investors in Harmony
An innovative housing finance company is poised to introduce a new approach to mortgage lending, just when mortgage finance reform has put the future of the 30-year fixed rate mortgage in doubt.
The Northern Virginia-based company is called Mortgage Harmony Corp. and it has dubbed the new product the Harmony Loan. The adjustable-rate mortgage, after a period of seasoning, allows the borrower to reset his or her interest rate with a click of a button and a tiny amount of paperwork.
“I didn’t pay much attention to it because interest rates were pretty low and steady at that time and I didn’t think they would go any lower,” Senchak said. “But then in June (2011) I noticed they started to slide again, and when one day I saw that the number had hit a number that I wanted to get, I pushed the button. It was that simple.”
Senchak added that there had been a small piece of paperwork. She had to acknowledge an email that asked if she really meant to change her rate and sign a rider to that effect, but she said the software program provided by the lender made that easy.