NEW YORK - Chase Manhattan Bank has introduced a fully amortizing jumbo mortgage with the interest at the prime rate.
The loan is being offered by Chase Manhattan Personal Financial Services, the jumbo loan unit of Chase Manhattan Mortgage Corp.
"This adjustable-rate mortgage has one of the lowest rates out there," said Thomas Garvey, president of the unit. "In addition, we're offering an introductory rate discounted below prime for the first six months."
The rate will be determined by the prime as reported in The Wall Street Journal, presently 8.5%. Industry sources said the rate appeared to be competitive with that of other similar products, but that the fully amortizing feature was new and could affect pricing.
Mr. Garvey said the loan carried flexible repayment terms up to 30 years, a low lifetime cap, and the option of conversion to fixed rates.
He said there had been a strong initial response to the nationwide offering. Chase had previously offered jumbos - mortgages larger than $203,150 - with interest payments only for the first 10 years.