Navy Fed Introduces Interest-OnlyMortgages

VIENNA, Va. - (08/05/04) -- Navy FCU, the largest mortgagelender among credit unions, said it continues to expand its loanofferings with an interest-only mortgage. The new mortgage, whichdefers principal payments until a set date, is geared towardsmembers who may have limited finances or plan a short stay in ahome, according to Tom Steele, executive vice president for lendingat the credit union giant. "This may be for people who are juststarting out and can only afford so much home," Steele told TheCredit Union Journal. Introduction of the new mortgage productfollows Navy's addition of several adjustable-rate mortgages inApril, which adds five-and-one, seven-and-one and 10-and-one ARMsto the credit union's existing one-and-one and three-and-one ARMofferings.