Freddie Mac can help you obtain
a home mortgage loan. But while Freddie Mac might sound like a generous uncle,
itís more closely related to Uncle Sam. So what is Freddie
Mac, and how does it help you when buying a home?
Freddie Mac is the Federal Home Loan Mortgage Corporation,
a private corporation founded by Congress in 1970. Freddie
Mac supports the secondary mortgage market by purchasing residential
mortgage loans, securitizing them, and selling them to investors
(usually through Wall Street).
By purchasing mortgage loans, Freddie Mac increases the availability
and affordability of home loans for low- and middle-income
So while you wonít normally deal with them directly, Freddie
Mac has a major impact on the price of mortgage loans -- something
that does affect you directly.
Hereís how Freddie Mac explains their primary benefit to
home buyers. The following passage comes from their website,
"Currently, we buy one mortgage every seven seconds
to help finance one in six American homes ... Because Freddie
Mac exists, millions of Americans benefit from lower interest
rates, readily available home mortgage credit, a wide choice
of mortgage products and reduced loan origination costs."
Educating Home Buyers
Freddie Mac also plays a major role in educating home buyers.
Their website offers a lot of informative (and credible) articles
on home ownership, home buying, mortgages and more. To use
these resources, visit www.FreddieMac.com.
* Copyright 2006, Brandon Cornett. You may republish this
article in its entirety, provided you keep the byline, author's
note and website hyperlink intact.
About the Author
Brandon Cornett is the editor of HomeBuyingInstitute.com,
one of the Internet's largest libraries of home buying information
-- over 100 expert articles on home buying and home mortgage
loans! Learn more at: http://www.homebuyinginstitute.com