http://www.WAMU.com/personal/loans/home_loan/mortgage_plus/default.asp#1

http://www.wamumortgageplus.com/

WAMU Mortgage Plus® offers you:
Flexibility. You can reset your rate twice a year. Switching from a fixed to a variable rate is always free, and so is the first time you switch to a fixed rate (after that, it's $250 each time). So you can take advantage of dropping interest rates without the cost and hassle of refinancing.
Savings. There are no closing fees, annual fees or mortgage insurance.

See "The Details" below.
Access. WAMU Mortgage Plus combines a traditional mortgage with the flexibility of a home equity line of credit. As you pay off principal, the available credit on the line increases. You can access this credit when you need it, using the WAMU Mortgage Plus credit card, checks, or cash advances.
Why choose WAMU Mortgage Plus?
WAMU Mortgage Plus meets your needs throughout your life by providing flexible options:
Save time and money. Set your rate and payments for a specific period of time and adjust to a lower rate if market interest rates decline—without refinancing.
Access the equity in your home as your financial needs change—without opening a separate line of credit.
WAMU Mortgage Plus is ideal for you if you follow financial markets. For example, if you track interest rates you can quickly and easily improve your rate without refinancing. And the built-in line of credit allows you to allocate funds to opportunities as they arise.
WAMU Mortgage Plus may be appropriate if you:
Have good credit
Need a mortgage for up to $1.5 million
Wish to purchase, refinance, or get a home equity line of credit
Want the flexibility to reset your interest rate without refinancing
Keep in mind:
When you use your home equity line of credit, the equity you have built up in your home decreases. Should you sell your house at this point, a greater portion of the purchase price would go to paying off the original mortgage.
If you refinance or pay off your mortgage within the first 36 months (30 months if you live in NC), you will pay a fee of either $1,000 or 1% of the original credit limit—whichever is greater.
A cancellation fee may apply to your credit line; ask your Loan Consultant about options for avoiding this fee.
For more information about WAMU Mortgage Plus, visit wamumortgageplus.com.
Reset your rate—the first time's free: This home loan and equity line of credit product allows you to obtain both variable rate advances and fixed rate loans. The Annual Percentage Rate (APR) for variable rate advances on lines greater than or equal to $250,000 is as low as Prime Rate – 0.35%, which is 7.90% as of 08/01/2007. The APR as of the same date for fixed rate loans of at least $250,000 is 6.75% for a five-year interest only fixed rate loan option. APRs quoted are available for our most creditworthy borrowers who enroll in Auto Pay from a WAMU deposit account, and have combined loan-to-values (CLTVs) of up to 80%. With Auto Pay, we automatically deduct your loan payment from your checking or savings account every month. APR may be higher for other loan amounts, CLTVs and credit qualifications. Maximum APR is 18%. Transaction fee of 4% applies to non-credit-card advances of less than $100. A fee of 2% applies to each credit card cash advance, or $2.00, whichever is greater. Card access not available in CT or TX. There is a $250 fee to obtain each fixed rate loan (other than the first two fixed rate loans). For credit lines greater than $10,000 and secured by your primary residence, we pay or waive typical costs and fees relating to opening your account, except for taxes, interest, fees not directly related to the credit transaction, or fees for additional products and services you voluntarily elect to obtain. You will be required to maintain property insurance on your residence at your own expense. A cancellation fee of the greater of $1,000 or 1% of the original credit limit will apply if the account is closed within the first 36 months (30 months in North Carolina). This account allows you to make minimum interest-only payments, which will not be sufficient to repay principal outstanding on your line. You will be required to pay the entire outstanding balance in a single payment upon the earlier of account closure or maturity. Consult a tax advisor regarding deductibility of interest. Washington Mutual programs, rates and terms subject to change and may vary by state. Certain conditions apply. Fixed Rate Loan offer not available in Texas.

Countrywide has a The Payment Advantage 5/1 ARM (Adjustable Rate Mortgage) from Countrywide® , it is not an offset mortgage, but one of the 4 payment options allows negative amortization. So its good for those with "variable" income like commisions.

This thread has two offset mortgages Combined Mortgage / Savings account (aka Offset Mortgage) in the quick summary one from Salem Five and one from Wells fargo.

My Wachovia Prime Equity Line/HELOC is pretty much the same thing.

No closing costs whatsoever (not even doc stamps or anything else)
Prime - .65%
Can Fix an outstanding balance on the line at any time w/ NO cost - ever!
As I pay down the fix bal, my available credit increases.
Fixed rate is .5% above variable at time of fix.

That is how I had a low, low rate for so long. My HELOC got down to 3.35% for variable items and I fixed $75k at 3.85%. However, the fixed part gets amortized rather than having interest only minimum payment.

But if you are looking at WAMU, this does seem decent.

BTW: If you close the Wachovia HELOC before 1 year, you must repay closing costs. My loan docs said that was around $750 for $100k.

CycloneFW said:My Wachovia Prime Equity Line/HELOC is pretty much the same thing.

No closing costs whatsoever (not even doc stamps or anything else)
Prime - .65%
Can Fix an outstanding balance on the line at any time w/ NO cost - ever!
As I pay down the fix bal, my available credit increases.
Fixed rate is .5% above variable at time of fix.My BofA HELOC is the same way. A couple years ago they were offering rate locks equal to the variable rate (prime -.5%), not sure what the spread is now.

My parents set up a product known as the WAMU Mortgage Plus about a year back and have been happy with it. They migrated to it from a standard HELOC product that was prime - 1% in order to take advantage of some flexibility. I didn't read a ton on the WAMU site that SIS posted but from the bullet points I think it is the same gig.

I'd totally pay $3500 for that.....

CycloneFW said:). Still got the line but sitting at $0. .For curiosity sake, would you be willing to call and report what the fixed rate lock rate would be today if you decided to take a draw now and fix the rate?? Id be interested in seeing if they are still offering you fixed rate locks at 0.5% above the variable rate.

We have an investment property WAMU Heloc but the fixed rate option was told by our rep to be in the double digits.

thanks for reporting back!

I wonder if the WAMU mortgage plus conversions/locks are at a better rate.

BTW other HELOC lenders have fixed rate lock options that are actually LOWER than their variable rate (UBOC is one). Chase and BofA have fixed rate lock options too. And I think UBOC and Chase allow multiple fixed loans.

Can anyone report on their experience closing one of these loans? Any catches other than the 30 month prepayment penalty? I'm not interested in the HELCO just the no closing costs aspect of the loan.