In Brief: Mellon Unit Launches 2 Adjustable Jumbos

PITTSBURGH - Mellon Bank Corp. said its jumbo mortgage group, Boston Co., has introduced two adjustable-rate jumbo mortgages with interest rates that can readjust every month. Boston Co.'s jumbos are for $250,000 or more.

One model is based on the prime rate, and the other follows the rate on one-month certificates of deposit in the secondary market. Both rates are published daily in The Wall Street Journal.

"These mortgages should generate strong interest among the high-net- worth borrowers we serve through our national network," said Paul Calhoun, senior vice president and national manager of Boston Co.'s jumbo mortgage group. "In particular, our two new products will appeal to those who feel that interest rates are near their peak or have begun to move down."

He added: "We believe our fully indexed rate is the lowest rate in the market."

Both of the mortgages are offered with no points and at reduced introductory rates. The lifetime cap is 12% or 5% over the starting rate, whichever is higher. Both can be modified to another adjustable rate or converted to a fixed rate after the first year, and both offer an interest-only feature for the first 10 years of their term.