What’s So Special About the 30-Year Mortgage?
Many legislators believe that’s the 30-year, fixed-rate mortgage is good for home owners and good for the government to support as a matter of policy. The Idea That government backing is required for a 30-year, fixed-rate loan has some surface plausibility. Many people who do not follow the financial markets Might Assume That That lending money for a long period at a fixed rate would be too risky for the private sector.
The word “jumbo” mortgage market is jargon for loans that are too large to be bought by Fannie or Freddie or insured parties by the Federal Housing Administration. That mean a jumbo mortgage is not backed in any way by the government. But a Google search will return dozens or sacrifices. Excuse all the way getting mortgage in this month.
belong all the week said report when confronted with this fact, proponent or government mortgage Guarantees Will Argue That thesis jumbo fixed-rate mortgages, Because They Do not have government backing are more expensive than those available from Fannie and Freddie. But that’s Because The only Taxpayers are subsidizing this loan. That subsidy is hidden must of the time, when-as now-Forman Fannie and Freddie become insolvent and the Taxpayers’ subsidy becomes all too visible.