Freddie Mac Standard Modification Interest Rate
December 1, 2012
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Current Interest Rate
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4%
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In accordance with Single-Family Seller/Servicer Guide (Guide) Section B65.18, Determining the Terms of a Freddie Mac Standard Modification, Servicers must use a predetermined fixed interest rate that is provided by Freddie Mac when determining a borrower's eligibility for a Freddie Mac Standard Modification.
Servicers must refer to this Web page each time they determine a borrower's eligibility in order to calculate the terms of a Standard Modification trial period plan payment. In addition, Servicers are reminded they must:
- Use the interest rate in effect on the date when the Servicer evaluates the borrower's eligibility for a Standard Modification trial period plan.
- Ensure that the interest rate used for determining eligibility for the trial period plan and calculating the trial period plan payment is the same interest rate used for the final modification terms – even if the interest rate that must be used for new trial period plan evaluations subsequently changes.
Future Adjustments to the Fixed Interest Rate
From time to time, Freddie Mac may adjust the interest rate that Servicers must use for new Standard Modification trial period plan evaluations. The interest rate adjustments are not based on a pre-determined schedule; the rate may adjust, as necessary, based on market conditions.
Historical Interest Rates
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Effective Dates
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Interest Rates
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September 1 – November 30, 2012
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4.25%
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July 1 – August 31, 2012
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4.625%
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January 1 – June 30, 2012
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5%
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Additional Resources
Are you a homeowner?
If you believe you qualify for a Standard Modification, please contact the company to whom you make your mortgage payments. Delinquent borrowers eligible for assistance will be contacted by their mortgage Servicer. Read more about how to avoid foreclosure.