Fannie Mae and Freddie Mac: A Look at Mortgage Lending Without Them

Welcome!

Brought to you by the National Association of Realtors^®

Find HouseLogic on:: Facebook; |; Twitter
About the Site Hide This

You care about your home. The NATIONAL ASSOCIATION OF REALTORS® cares about homeownership. To help you become the best, most responsible homeowner you aspire to be, we want to provide you with free information and tools you can use to make smart and timely decisions about your home.

From time to time, we may reach out to you to help us support legislation and/or policies that may have an impact on you, the homeowner. You can choose to join our cause. Or you can choose not to. Regardless, your privacy is safe with us.

We'll never share or sell your email address or other personal information you may provide us in the course of using the site with anyone without your explicit consent.

Published: April 25, 2011
By: Dona DeZube
Be the first to comment

Some legislators say we don’t need mortgage giants Fannie Mae and Freddie Mac. What would happen if lawmakers got their way?

Monthly payments

Both families finance $160,000. The mortgage payment on the Smith’s 4.93% loan is $852.08 per month. The Joneses’ Fannie Mae loan carries a lower interest rate, so their monthly payment is nearly $100 a month less. In the first year alone, the Joneses save $1,597.47 because of the Fannie Mae guarantee.

	Smiths	Joneses
Finance amount	$160,000	$160,000
Interest rate	4.93%	3.93%
Monthly payment	$852.08	$757.42
Year 1 savings	N/A	$1,597.47

Next: Financial troubles

Dona DeZube

has been writing about real estate for more than two decades. She lives in a suburban Baltimore Midcentury modest home on a 3-acre lot shared with possums, raccoons, foxes, a herd of deer, and her blue-tick hound.

1 2 3 4 5 6 Previous Next

Track Your Progress

Mark as Read

They’re lush, green, and all-American. They’re also water-hogging, time-sucking nuisances. In fact, some are saying ‘no’ to turf. Should we get rid of our lawns?

What are lawn alternatives?

Turf grasses

Ground cover

Fake grass

And, yes, lawn paint!