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The Federal Home Loan Mortgage Corporation (Freddie Mac) has begun a new second-mortgage program designed to help unlock billions of dollars in housing equity and provide new investment opportunities for lenders.
Effective Jan. 13, Freddie Mac began purchasing second mortgages of up to $66,625 from lenders on owner-occupied one- to four-family properties.
The fixed-rate mortgages are for terms of from 5 to 15 years. Freddie Mac has placed no restrictions on the use of funds from the second mortgage except as provided by applicable state laws.
A second mortgage is secured by a lien on the property that is subordinate only to the first mortgage.
