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GMAC rolls out 30-year loan for Mexican homes

New administration committed to fostering foreign investment

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LA JOLLA, Calif. -- The new political administration in Mexico is committed to continuing the flow of foreign investment into the country - including the promotion of second homes and retirement residences - and United States mortgage lenders have taken the message to market. GMAC International Mortgage this week announced it had rolled out a 30-year, fixed-rate mortgage for Americans buying property in Mexico in addition to a "stated income" or limited documentation option for a slightly higher interest rate. Both components also are available to borrowers for "cash-back" refinances, allowing customers to pull out up to 50 percent of the cash value of their primary residence or second home in Mexico. The cash-back ratio will increase to 70 percent in January, according to Dan Bryant, director of GMAC International Mortgage. GMAC is the first national lender to introduce a 30-year, fixed-rate product south of the border. The news was the most significant announcement made at the annual...