ING DIRECT has launched a Variable Rate Mortgage. With one of the lowest interest rates available, the new product is specifically designed to enable customers to pay off their mortgage faster.

“This is a milestone for ING DIRECT,” said Paul Bedbrook, president and CEO of ING DIRECT, in a news release. “We are doing for mortgages what we did for savings … offering the best rate with the best terms.”

The mortgage’s prepayment privileges allow customers to increase payments each year by up to 25% of their original monthly amount on any scheduled payment date.

Yearly prepayment privileges allow customers to decrease their mortgage principal by up to 25% of the original principal balance on any scheduled payment date.

The mortgage also offers a 120 day rate guarantee between the date of approval and the mortgage advance date

An mortgage offers an interest rate that is equal to ING DIRECT’s Prime rate less 0.50% for the full five-year term. This rate will be adjusted every three months to reflect ING DIRECT’s current prime rate, less 0.50%. The current Annual Percentage Rate (APR) of the ING DIRECT Variable Rate Mortgage is 3.97% over 5 years as of September 17.