The Real Deal Miami

Freddie Mac to end interest-only mortgage purchases

February 26, 2010 04:18PM

Freddie Mac is planning to end its purchases of interest-only mortgages by September, the mortgage giant announced today. That includes the company’s own Initial Interest fixed-rate and adjustable-rate mortgages, which allow interest-only monthly payments for a certain period, after which monthly payments switch to principal plus interest for the remainder of the mortgage term. The government-backed company said it will also halt its practice of securitizing such mortgages. TRD