Competitive Landscape - Interest Only Residential Mortgage Products

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Competitive Landscape - Interest Only Residential Mortgage Products

The attached spreadsheet gives the competitive landscape of the interest-only residential mortgage products of the banks with the available information. After an extensive search of the banks websites, press releases and credible media sources, the complete details of the interest-only mortgage products are not publicly available, especially the interest rates currently offered, and the specific types of interest-only products. Below are the available details.

First Republic

First Republic offers interest-only mortgage loans on its Home Equity Line of Credit but there is no further information provided on its website. An article by the Wall Street Journal shows that it offers perks to mortgage clients who have a median net worth of $3.3 million.

Wells Fargo

Wells Fargo does not offer interest-only mortgage loans. However, it promotes its Home Equity Line of Credit principal-plus-interest payments as offering less interest than the interest-only payments of other lenders.

Key Bank

Key Bank also offers interest-only mortgage loans on its Home Equity Line of Credit (HELOC) but there is no further information provided. This includes Standard (HELOC) and High Value (HELOC) but the corresponding net worth involved were not specified. It has a link to get rates on its website, but the link is not accessible.

Union bank

Union bank offers Jumbo Mortgage Loans to high net worth clients. This includes interest-only loans with initial fixed-rate payment periods of up to 10 years. Clients with investable assets of at least $1,000,000 are eligible for mortgage rate discount of at least 0.25% or fee discount of at least 1.000 percentage points. It did not specify the types of interest-only products like 5/1 ARM, and the interest only period.

Conclusion

The competitive landscape of the interest-only residential mortgage products of the banks with the available information is outlined in the attached spreadsheet. Only First Republic, Key Bank and Union bank offer interest-only mortgage loans.
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