BankPacific has just launched its newest loan program MyJumboLoan. The program targets prospective high-end homeowners by offering them the ability to obtain loans ranging between $500 000 and $1.5 million to build purchase or refinance the home of their dreams.
The program is BankPacific’s response to increased customer demand which in turn was brought about by the evolving housing market on Guam bank officials told the Journal. "The drive behind the development of this product was the increasing prices of homes on Guam " said Anthony Barcinas vice president of credit administration. "The significant number of projects being built right now all cater to the high-end customer. Homes with prices above $500 000 have become a lot more common." While getting jumbo loans on Guam is not new being able to obtain one quickly and easily definitely is and this is what BankPacific believes will be the unique draw of the new program. "What we have surveyed in the market was that individuals seeking larger residential mortgage loans were handled differently – the application process the timeliness the complexity – were all a little bit more extensive " said Barcinas. "We wanted to custom tailor a product that caters to the high net worth individual that was just as convenient and easy to apply for as a conventional mortgage loan at a much lower amount."
Naturally another advantage of the program will be the time frames involved. "We are a local bank so all the credit decisions are made locally which results in expedited review processing and credit decisioning " said Barcinas. "So we can turn applications and render a credit decision relatively quickly."
The program also offers other features like a typhoon waiver competitive long-term fixed rates and no prepayment penalties.
The launch of this program brings even more good news to a housing market that has perked up with recent reports of the federal government’s bailout of troubled mortgage giants Fannie Mae and Freddie Mac. "Rates have been coming down " Barcinas affirmed. "A 30-year conventional fixed rate mortgage is now below 6% when a few days ago it was closer to 7%. Although we haven’t seen the stock market react favorably as yet I think it was probably the right move for the government to step in and take control."
The bank plans to launch more loan products and services in line with a more environmentally-conscious concept during the fourth quarter of this year. MBJ