FANNIE MAE AND FREDDIE MAC LOANS

Freddie Mac

Freddie Mac, or Federal Home Loan Mortgage Corporation, started in 1970, and were both created to ease the ability of home ownership and increase access to affordable rental housing. These were established to purchase home loans from individual lending organizations, so lenders could still have funds available for additional borrowers. Fannie and Freddie motivates lenders to offer their long-term fixed-rate mortgages, otherwise these GSEs, or government-sponsored enterprises will snatch them up. Because figuring out which mortgage is best for you can be difficult, we’re here to help. You should to shop around for financing that is right for your situation & works for you. A financing deal on a home is a product, just like a car, so you’ll want to compare the prices and benefits. Different lenders will quote you different prices, and they won’t look around for the best price for you unless they’re contracted to act as your agent. Just as you’re allowed to shop around for a mortgage, the same is true for a lender. First, you need to decide how much of a down payment you can afford, and what costs you’ll be responsible for with getting this loan. Ask each possible lender for a list of their current mortgage interest rates, whether it’s fixed or adjustable, and the loans annual percentage rate (APR). In addition to rates, there are points. These are fees paid to the broker or lender, and the more points you “pay,” the lower your interest rate will be. Also, there are fees along with a home loan, like underwriting fees, broker fees, and closing costs. You’ll get an estimate of what the will fees cost for that lender, and many are negotiable. Ask what each fee includes, too—many may be lumped together into one. Just as you shop around to find the homes that is right for your family, you should also be shopping the best loans and lenders. Finding the best mortgage and finding your way above this confusing process of home buying will be made easier by finding an expert, qualified mortgage lender. At Fidelity Mortgage Solutions, we are your expert. Call us today to get started on your mortgage shopping 719-886-2752.