Lenders Bottom Fishing For Borrowers
With the howls of condemnation still echoing around Washington DC, Freddie Mac unveils a new mortgage product intended for the "savvy borrowers". "(T)he second-biggest provider of financing for U.S. housing, said that it will expand its interest-only payment option to more adjustable-rate home loans to meet demand from borrowers".
But you really, really have to be serious to get this loan;"(Its) designed for borrowers who fully understand that the monthly payment will rise following the interest-only period," Freddie Mac said in the statement. The story points out "they are popular with consumers who are stretching financial resources and might not be able to repay the loans when interest rates rise."