Aiming to help reach “sustainable homeownership,” Waterstone Mortgage unveiled a new mortgage loan that features some unique characteristics designed to allow borrowers to build up equity quickly.
According to Waterstone, the new “Wealth Building Loan” is designed by Stephen Oliner and Edward Pinto, co-directors of the American Enterprise Institute International Center on Housing Risk, and supported by Mortgage Guaranty Insurance Corporation, which provides the underwriting services and mortgage insurance for the loan.
The loan is pilot program and Waterstone is the first lender to offer it nationally, with branch locations in more than 18 states.
According to a release from Waterstone, the “Wealth Building Loan” requires no down payment, and offers eligible borrowersa 7/1 adjustable rate mortgage with a 20-year amortization.
Waterstone said that the “Wealth Building Loan” also eliminates monthly mortgage insurance payments nearly four years sooner than a 30-year conventional loan with a 3% down payment.
According to Waterstone, all of these factors allow homebuyers build equity quickly by applying more of their payment to principal and less to interest each month.
“Steve and I developed the Wealth Building Home Loan to provide homebuyers a way to build equity faster and achieve sustainable homeownership,” Pinto said. “Waterstone Mortgage’s national rollout of its new Wealth Building Loan is a strong validation of market interest.”
Eric Egenhoefer, Waterstone Mortgage’s president and CEO, said that the “Wealth Building Loan” is an important addition to its portfolio of loan offerings.
“It fulfills an essential role in our product lineup because it caters specifically to savvy homebuyers who are interested in building equity quickly,” Egenhoefer said. “The addition of the Wealth Building Loan will also help Waterstone Mortgage achieve our overall goal of serving as many potential homebuyers as possible.”