Freddie Mac Earns Customer Loyalty in Virginia ARM Transaction
|Location:||Falls Church, VA|
|Loan/Deal Type:||ARM and Streamlined Refinance|
|Number of Units:||493 units|
|Loan Amount:||$51 million|
Freddie Mac purchased a $51 million adjustable-rate mortgage from Deutsche Bank Berkshire Mortgage allowing their borrower, Zuckerman-Gravely, to refinance their property, the 493-unit Fairfield Crossing apartments in Falls Church, Va.
"Freddie Mac won this existing portfolio loan by helping to pitch a floating-rate execution that met the borrower's proceeds needs, while also providing the prepayment flexibility they desired, a reasonable capped interest rate, and the ability to float over the Freddie Mac 30-day Reference Bill, which continues to trade at historically low levels. Moreover, the time to spread-lock took less than a week," said Brian Kochan, Deutsche Bank Berkshire Mortgage assistant vice president. "The team at Freddie Mac was fantastic in the way they responded and in their work product. Suffice to say, Freddie Mac will continue to see business from this borrower for years to come."
The Freddie Mac Adjustable-Rate Mortgage offers prepayment flexibility and attractive short-term rates and the following:
"The team at Freddie Mac was fantastic in the way they responded and in their work product. Suffice to say, Freddie Mac will continue to see business from this borrower for years to come."
assistant vice president , Deutsche Bank Berkshire Mortgage
- A choice of indices and 5-, 7-, or 10-year loan terms
- A choice of the Freddie Mac Embedded Interest Rate Cap or borrower's own cap coverage from a third-party provider
- The availability of early spread-lock for 60 or 120 days
- The ability to convert to a new Freddie Mac Fixed-Rate Mortgage at any time after lockout with streamlined underwriting
The transaction also benefited from the Freddie Mac Streamlined Refinance option and Early Rate-Lock. The Freddie Mac Streamlined Refinance option offers reduced documentation and lower costs when you're refinancing a loan already in the Freddie Mac portfolio. Streamlined refinances can be completed on an expedited basis reducing time to loan origination, and there is no cash required for the good faith deposit.
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