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Crank
2 years ago
14

quizlet joe's applying for a mortgage that meets all of the fannie mae/freddie mac criteria. based on this, how would we classif

y this loan?
Business
1 answer:
Cloud [144]2 years ago
5 0

This loan is best classify as a <u>conventional mortgage loan</u>.

<h3>What is a conventional mortgage loan?</h3>

This refers to a conforming loan which simply means that it meets the requirements for Fannie Mae or Freddie Mac.

This type of mortgages have a fixed rate of interest and means that the interest rate does not change throughout the life of the loan. Also, they are not guaranteed by the federal government and as a result have stricter lending requirements by banks and creditors.

In conclusion, the entities Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages from lenders and sell them to investors.

Read more about mortgage loan

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