New Kind of Mortgage: Fannie Mae and...
From Times Staff and Wire Reports
New Kind of Mortgage: Fannie Mae and General Electric Mortgage Capital Corp. of Raleigh, N.C., are teaming up to offer a new kind of home mortgage that combines an adjustable and a fixed-interest rate in a single loan. Fannie Mae, formally known as the Federal National Mortgage Assn., has agreed to buy up to $1 billion of the mortgages. The so-called Stable mortgages will have two options. In one, 75% of the loan amount would carry a fixed rate, while the rest would have an adjustable rate, repricing every year. The minimum down payment would be 5%. In the second option, 50% of the loan would carry an adjustable rate, with the rest at a fixed rate. The minimum down payment would be 10%.
