United Wholesale Mortgage has begun offering interest-only mortgages through its third party origination channels.
The Troy, Mich., company is
"The purpose of the program is not to enable a consumer to afford a larger house," Mat Ishbia, chief executive, said in a news release. "It's for savvy borrowers who can regularly afford a house on a 30-year fixed mortgage, but choose the interest-only option to save additional discretionary income."
The program will be made available to borrowers through mortgage brokers, correspondents, small banks and credit unions. Loan amounts for this non-agency project will range from $250,000 up to $2 million
Large banks have historically offered interest-only mortgages, but usually have restricted them to jumbo loans, UWM said.
