Fannie Mae has introduced a program that automatically withdraws money for mortgage payments from borrowers' paychecks.
The Working Mortgage, as it is called, results in a faster amortization of the mortgage, letting the borrower build equity faster, Fannie Mae said.
The new service initially will be available from Bank One Mortgage, Citicorp Mortgage, FT Mortgage, and Old Kent Mortgage. It offers special benefits, including lower down payments, easier qualification rules, and greater buying power, Fannie Mae said.
For employees paid once a week, each deduction would be one-fourth the monthly mortgage payment; for employees paid on a biweekly basis, each deduction would be one-half the payment.u