Federal Home Loan Mortgage

The Federal Home Loan Mortgage Corporation is a government sponsored enterprise which buys qualified mortgage loans from the financial institutions that originate them and repackages them to sell as investment securities. It allows borrowing money at interest rates lower than those available to other financial institutions. With this funding advantage it issues large amounts of debt (known in the market place as agency debt or agencies), and in turn purchases and holds a huge portfolio of mortgages known as its retained portfolio. Selecting your mortgage is almost as important as selecting your home. There are many things to consider. What you decide may make a big difference in your monthly payments and in the overall cost of your loan. The factors one must consider while selecting a home mortgage are:-

Evaluate different mortgages and use the mortgage worksheet.
Understand mortgage rates.
Understand the differences between fixed- and adjustable-rate mortgages.
Know how 15-year and 30-year mortgages change your monthly payments.
Understand down payments and closing costs.