Fixed-rate Mortgage Overview
As a cornerstone of U.S. home financing, Freddie Mac purchases a variety of fixed-rate mortgages. Starting with traditional 15-, 20-, 30- and 40-year fixed-rate mortgages, and expanding into many varieties of specialty mortgage products, our fixed-rate mortgage offerings leverage the power of a fixed interest rate for the life of the loan – and for many property types. Use most fixed-rate mortgages for single-family homes, including 1- to 4-unit primary residences, condominiums, second homes, manufactured homes, and investment properties.
Today we have the advantages you need for your current fixed-rate mortgage originations, and the seasoned fixed-rate mortgages you’re holding in your mortgage portfolio. Combining a 15-, 20-, 30- and 40-year fixed-rate mortgage with a range of Freddie Mac mortgage products, and cash sales or securities executions, offer you highly competitive options to meet the needs of an increasingly diverse borrower base.
| Feature |
Requirements |
Property Type |
- 1- to 4-unit primary residences, including condos, PUDs and manufactured homes.
- Second homes
- 1- to 4-unit investment properties
|
Transaction Type |
- Purchase
- No cash-out refinance
- Cash-out refinance
|
Maximum LTV Ratios (without secondary financing) |
- Maximum LTV ratios must comply with Single-Family Seller/Servicer Guide (Guide) Section 23.4.
|
Down Payment or Closing Costs |
- Secondary financing
- Shared equity plans
- Temporary subsidy buydown plans
- Other options based on mortgage product type
|
Eligibility/Underwriting |
- Loan Prospector®
- Non-Loan Prospector
|
Execution Options |
- Servicing-released Cash*
- Servicing-retained Cash
- Fixed-rate Guarantor
- MultiLender Swap
* See our selling system availability matrix [PDF 72K] for a list of specific fixed-rate mortgages eligible for sale through Cash under mandatory contracts servicing released and best efforts contracts with, servicing released or retained. |
Delivery Fees |
- A special postsettlement delivery fee applies to 40-year fixed-rate mortgages. Additional postsettlement delivery fees may apply based on the individual characteristics of the mortgage. See Guide Exhibit 19 [PDF 380K] for details on applicable fees.
|
Special Delivery Requirements |
- You must deliver all mortgage data required by Form 11.
|
Lender Benefits
Fixed-rate mortgages help you:
- Offer a popular, stable mortgage product line that can be combined with many options to increase your origination volume in any market condition.
- Enhance your competitive options with both cash and securities sale options.
- Effectively manage your retained mortgage holdings with seasoned fixed-rate mortgage sale solutions.
Benefits for Your Borrowers
Fixed-rate mortgages help your borrowers:
- Obtain the security of a stable monthly payment throughout the life of the mortgage.
- Leverage 15- and 20-year fixed-rate mortgages to build equity more quickly, or take advantage of a lower monthly payment with a 30- or 40-year* fixed-rate mortgage.
- Choose from a variety of home financing options, for a variety of property types, to meet their individual financial circumstances.
* With 40-year fixed-rate mortgages, it continues to be important that borrowers have sufficient information on the terms of the mortgage product, and that the associated features, benefits and risks of the selected mortgage product are clearly explained to the borrower prior to the borrower making a product or payment choice.
Get More Information
- Call your Freddie Mac representative.
Training Opportunities
Visit The Learning Center for live and recorded web conferences, access to classroom-style workshops and self-study tools – all designed to help you stay competitive, serve more borrowers and make it easier to do business with us.
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