Wachovia Mortgage Rates Dropping Pick-A-Payment
Wachovia On line Banking has decided to stop offering its Pick-A-Payment Wachovia mortgage rates. These Wachovia mortgages allowed borrowers to choose whether to pay principal and interest, interest only or not even the interest. If borrowers decided to not pay the interest amount the amount borrowed would actually increase over time.
This pick-a-payment Wachovia mortgage rates was a loan product originally offered by Golden West Financial Corp. which Wachovia Online Banking acquired. No longer will borrowers be able to pay the minimum payment plan. All borrowers will now have to at least pay the interest due. I believe that this is a good decision. These negative amortizing loans overextend borrowers and add to the foreclosure problem in the United States.
From now on Wachovia mortgage rates will have to be paid as follows:
- an interest-only payment plan that does not reduce principal
- a 30-year payment plan, and
- a 15-year payment plan.
This decision to shut down the pick-a-payment minimum payment option might be part of the Wachovia mortgages article written last week about Wachovia hiring Goldman Sachs to provide consulting services for the Wachovia mortgage business. It is not clear if these two events are independent of each other.
It is a quite interesting post but quite difficult to understand for me -