Also known as the Federal Home Loan Mortgage Corporation, or the FHLMC, Freddie Mac is a government-owned corporation that famously gave banks the ability to finance 30-year mortgages, what has become an industry standard. Because Freddie Mac buys mortgages, banks and other lending companies don't have to bear the burden of keeping a 30-year loan on their books, what would be an expensive endeavor. Instead, Freddie Mac repackages the mortgages it buys into mortgage-backed securities and sells them to investors, with the proceeds of those sales going toward buying more bank mortgages. In essence, Freddie Mac's mortgage activity keeps the gears of the housing market turning, while making the housing market more navigable for the average American homebuyer.
Overall, Freddie Mac helps keep mortgage interest rates low, an incentive for first-time or experienced homebuyers to get in on the real estate market. Especially in a hot locale like Orange County, keeping mortgage interest rates low and loan options plentiful is a win-win. Another role of Freddie Mac's is to attempt to keep mortgage rates consistent across disparate markets. But how does this truly affect homebuyers in Southern California? The number one result is lower mortgage interest rates, but there are other valuable ways to make use of Freddie Mac. For instance, the institution provides monthly housing market analyses accessible to the public, so that potential homebuyers in Southern California and beyond are well-informed of current the real estate environment.
By keeping mortgage interest rates low, Freddie Mac plays a pivotal role in stimulating the housing market, while also allowing for a variety of loan options to remain available for Southern Californians. Having a range of home loan options at the ready for Orange County homebuyers is vital to keeping the larger Southern California real estate market healthy. It also ensures that no matter what your housing budget, home loan needs, or larger financial goals may be, there is likely a loan option that will support your path to homeownership here in Orange County.
Based in Southern California, the experienced team of mortgage professionals at Summit Lending is here to answer any questions you may have today regarding your home loan options. As a direct real estate mortgage lender in Orange County, we're here to assist homebuyers, as well as existing homeowners, to secure affordable mortgage loan options that are right for you, based on your distinct circumstances.
Summit Lending is proud to provide low interest rate mortgage loans to buyers and homeowners in and around Riverside County, San Diego County, San Bernardino County, Ventura County, and Los Angeles County. Our Summit Lending team has all the expertise you need to navigate your home financing needs, whether you've bought and sold multiple homes or you're a first-time homebuyer.
Based in Huntington Beach, CA, with offices throughout the Southern California region, Summit Lending can be reached online, on Facebook, or via phone at 888-451-9006. From conventional fixed rate loans to Jumbo loans, VA loans, FHA loans, reverse mortgages and cash out refinances, at Summit Lending we are eager to assist you in accomplishing your short and long term real estate financing goals.