Interest only Mortgage

March 1, 2010
Matt Isleib

 

In a statement made last week Freddie Mac publicly expressed its intent to stop purchasing and securitizing interest only mortgages. These mortgages allow borrowers to make just interest payments for a specified period of time. The interest only mortgages have been available as both 30 year fixed rate loans as well as adjustable ARM loans.

Their statement went on to say an official release will be issued in an upcoming servicer/seller guide and plans to cease all purchase by September 1.

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