Wells Introduces 10-Year IO ARM

Wells Fargo Home Mortgage, Des Moines, Iowa, has announced the introduction of an interest-only adjustable-rate mortgage that doesn't require a principal payment for 10 years.The 10-year ARMs, which can be used for purchase or refinance transactions, are designed for homebuyers who don't intend to occupy their homes for more than a few years or who want to redirect their cash flow to high-yield and tax-deferred savings or to maximize retirement contributions, the company said. Previously, Wells Fargo Home Mortgage offered the IO feature only on five- and seven-year ARMs. "The interest-only feature is a great option for customers who need to invest funds in other ways," said Joe Rogers, executive vice president for pricing, products, and programs in the company's National Consumer Lending Sales area. The company can be found online at http://www.wellsfargo.com.