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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-, and 30-year fixed-rate mortgages, and expanding into many varieties of specialty mortgage products – like 40-year fixed rate Home Possible® Mortgages – our fixed-rate mortgage offerings leverage the power of a fixed interest rate for the life of the loan. 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. Combine a 15-, 20-, and 30- year fixed-rate mortgage with a range of Freddie Mac mortgage products, and cash sales or securities executions for highly competitive options that meet the needs of an increasingly diverse borrower base.

For super conforming fixed-rate mortgages, see our detailed requirements in Chapter L33 of the Single/Family Seller/Servicer Guide (Guide).

FeatureRequirements
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)
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
  • Minimum Indicator Score of 620 unless otherwise specified in the Guide (Loan Prospector A-minus mortgages are exempt).
  • All mortgages must meet the risk class and/or minimum Indicator Score requirements in Guide Exhibit 25A.
  • Maximum debt-to-income ratio of 45 percent for manually underwritten mortgages.
Execution Options
  • Servicing-released Cash*
  • Servicing-retained Cash
  • Fixed-rate Guarantor
  • MultiLender Swap

* See our selling system availability matrix 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
  • Postsettlement delivery fees may apply based on the individual characteristics of the mortgage. See Guide Exhibit 19 for details on applicable fees.

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- year fixed-rate mortgage.
  • Choose from a variety of home financing options, for a variety of property types, to meet individual financial circumstances.

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.

The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.

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