interest only: Freddie Mac Axes Interest Only Mortgages - 02/28/10 01:01 PM
While it shouldn't come as a huge surprise, on Friday, Freddie Mac has announced that they will no longer purchase and securitize iinterest only mortgages.  This policy takes effect on September 1, 2010 and impacts both fixed and adjustable rate mortgages.
So far, Fannie Mae has not announced similar plans for the once, wildly popular, interest only option.  Since 2007, Fannie and Freddie have pretty much been the sole buyers of interest only mortgages.  Reports say that over 17% of Freddie's interest only loans were 90+ days delinquent as 2009 ended.
Only time will tell if interest only loans will see 2011.
 
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