Equity One, Inc. Introduces New 40-Year Fixed and Adjustable Rate Mortgage Products

Equity One, Inc., a wholly-owned subsidiary of Popular Financial Holdings, Inc. (PFH), today announced the introduction of new mortgage products in response to market needs for longer amortization terms and lower monthly payments, due, in part, to the continuing rise in housing prices. Equity One's 40-year fixed and adjustable rate (ARM) mortgages and its 40/30 ARM are available to customers who are looking to lower their monthly mortgage payment, increase their monthly cash flow and build equity in their homes.

Equity One's 40-year fixed rate mortgage has principal and interest payments based on a 40-year term, while the 40-year ARM product allows for an initial lower monthly payment for a fixed period of time, of either two years or five years. After the initial term, principal and interest payments adjust every six months for the remaining term with a final payment due in year 40.

"We believe these new 40-year products are on the forefront of a new product trend in our industry," said Bill Williams, PFH President and Chief Executive Officer. "First time homebuyers continue to be faced with increased housing prices, often beyond their budget. Our 40-year mortgages may allow them to purchase the home they want because of the lower monthly payments the products offer."

"These products also provide a good alternative for those customers who may otherwise consider an interest-only product as a way to keep their monthly payments low, because in addition to low monthly payments, our 40-year products allow customers to build equity in their homes," Williams said. Other customers who may benefit from these products include those who plan to be in their house for five years or less in an area where homes are appreciating in value, as well as customers purchasing investment properties who want to minimize their monthly cash expenditures.

In addition, Equity One is introducing a 40/30 ARM product, where the interest rate is fixed for an initial period of two or five years, after which principal and interest payments adjust every six months, with a balloon payment due at year 30. The company introduced its fixed rate 40/30 product in August 2005.

Equity One, Inc. is a diversified consumer lending institution offering a complete line of real estate secured and unsecured loan products. Equity One, Inc. is a wholly-owned subsidiary of Popular Financial Holdings, Inc. (PFH), based in Marlton, New Jersey, which is a wholly-owned subsidiary of Popular, Inc., a full service financial services provider with operations in Puerto Rico, the United States, the Caribbean and Latin America. PFH, as Popular, Inc.'s finance subsidiary in the United States, operates nearly 200 retail lending locations offering mortgage and personal loans, and also maintains a substantial wholesale broker network, a warehouse lending division, loan servicing, and an asset acquisitions unit. PFH also has a significant online lending presence through its E-LOAN operation in Pleasanton, CA.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.