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Freddie Mac Standard Modification Interest Rate

Current Interest Rate*
Effective November 14, 2014
4.25%

Single-Family Seller/Servicer Guide (Guide) Sections B65.18, Determining the Terms of a Freddie Mac Standard Modification and Freddie Mac Streamlined Modification, B65.12.1(c) and B65.12.2(c) describe situations where Servicers must use the Freddie Mac Standard Modification (Standard Modification) interest rate, a fixed interest rate provided by Freddie Mac, when determining the terms of a Standard Modification Trial Period Plan, Freddie Mac Streamlined Modification (Streamlined Modification) Trial Period Plan or a Capitalization and Extension Modification for Disaster Relief ("Disaster Relief Modification") Trial Period Plan. In these situations, the same Standard Modification interest rate used for the Trial Period Plan must also be used for the final modification.

Please review this Web page and Guide Sections B65.18, B65.12.1 and B65.12.2 when using the Standard Modification interest rate.

Monthly Adjustments to the Fixed Interest Rate

*Effective July 8, 2014, Freddie Mac will evaluate market rates on a monthly basis to determine whether a change to the Standard Modification interest rate is necessary. If the interest rate changes, the new rate and its mandatory effective date will be posted on this Web page by the fifth business day of each month. Servicers must implement the new rate for Trial Period Plan evaluations conducted on or after the 10th business day of that same month, but no sooner. Evaluating the rate on a monthly basis ensures that we provide appropriate payment relief for qualified borrowers who need mortgage assistance in the form of a home retention option.

Interest Rate Application

Use the following guidelines to determine a borrower's eligibility for a Standard Modification and to calculate the terms of a Standard Modification, Streamlined Modification or Disaster Relief Modification Trial Period payment:

  • Visit this Web page on or after the fifth business day of every month for the new interest rate.
  • Implement the new interest rate on the tenth business day of the month, but no sooner.
  • Use the interest rate that is in effect and posted on Freddie Mac's website when evaluating a borrower until the mandatory effective date of the new interest rate.
  • Ensure the interest rate used to determine final modification terms is the same fixed rate that was used when determining eligibility for the Trial Period Plan and calculating the Trial Period payment – even if the interest rate that must be used for new Trial Period Plan evaluations subsequently changes.

Historical Interest Rates

Effective Dates
Interest Rates
October 14, 2014 – November 13, 2014
4.50%
September 15, 2014 – October 13, 2014
4.375%
July 14, 2014 – September 14, 2014
4.50%
September 1, 2013 – July 13, 2014 4.625%

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.

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