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Freddie Mac To Stop Buying Interest-Only Mortgages

Feb 26, 2010 | Reprints | Unlock Link | Print

Beginning September 1, Freddie Mac will cease purchasing and securitizing interest only mortgages, including Freddie Mac Initial Interest fixed-rate and adjustable-rate mortgages.

The agency will provide more information in an upcoming Single-Family Seller/Servicer Guide bulletin.

Interest only mortgages, including Freddie Mac Initial Interest mortgages, provide for interest-only payments for a specified period of time beginning with the first monthly payment after the note date, and principal and interest payments on a fully amortizing basis for the remainder of the mortgage term.

Residential Real Estate