Mortgage Loans: Fannie Mae and Freddie Mac

If you're shopping for a mortgage loan will traverse the names of Fannie Mae and Freddie Mac to a certain point. While these organizations are not mortgage lenders themselves, directly affect the loan you get. Here are the basics of these organizations and how they affect the mortgage loan. Fannie Mae and Freddie Mac help keep the mortgage industry on track, ensuring that mortgage lenders have money to pay when you apply for a mortgage. These organizations of mortgage debt to purchase and repackage that debt, as well as securities that are sold to investors. The capital raised through the sale of this debt is used for the purchase of mortgage loans as resulting in a cycle of buying and selling mortgage debt to fuel the industry. So what does all this have to do with you, the future home? Doing what they do, Fannie Mae and Freddie Mac, the mortgage financing that is necessary is available. Prior to these organizations there has been much more difficult to qualify for mortgage banks, because they simply do not have enough money to go around. Because of Fannie Mae and Freddie Mac are the interest rates at low levels they are today. What is Fannie Mae? Will Fannie is the Federal National Mortgage Association, which was established by the legislation in Congress. Founded in 1938, Fannie Mae was regulated by the government until 1968. Fannie Mae is a public company traded on the New York Stock Market. Today, Fannie Mae is the largest provider of money for home loans in the United States. Fannie Mae is sponsoring a series of programs to make mortgages more affordable. Many of the new mortgage loans on the market today were introduced by Fannie Mae, these programs include interest only loans, home loans and bad credit. What is Freddie Mac? Freddie Mac is the Federal Home Loan Mortgage Corporation, another financial institution that purchases mortgages from lending institutions. Freddie Mac is regulated by the federal government and is also a listed company. Freddie Mac is very similar to Fannie Mae, the two companies are in direct competition with each other. Freddie Mac sponsors similar programs to promote home ownership including No Money Down Mortgage Bad Credit Mortgage and other offers. If you have any owner of a house are likely to Freddie Mac and Fannie Mae has had a role in financing. For more information on mortgages and how to avoid mistakes common home, to register a free guide guide using the link below. To get your free mortgage guide Visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid common mistakes guides and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free guide today at: http://www. refiadvisor.com Apex Mortgage Refinance Article Source: http://EzineArticles.com/?expert=Louie_Latour