Countrywide Unveils 1st-Lien HELOC

Countrywide Home Loans Inc., Calabasas, Calif., has introduced an adjustable-rate mortgage loan that is a first-lien home equity line of credit.The FlexSaver ARM loan has a 25-year term, with an initial draw period in the first five years that may be extended for an additional five years, Countrywide said. During the draw period, the minimum monthly payment due is the interest-only amount. The loan, which can be for amounts as high as $1 million, is fully amortized during a 15-year repayment period, the company said. "The FlexSaver ARM closely mirrors a traditional first-lien mortgage, but since it is a first-lien HELOC, borrowers have a lot more flexibility and control over their monthly payments," said Vijay Lala, Countrywide's senior vice president of product development and support. The FlexSaver ARM offers three payment options: using the loan's credit balance to make the monthly payment; paying the minimum balance due; or paying the minimum plus an additional amount to reduce the principal balance. The company can be found online at http://www.countrywide.com.