Freddie Mac announced a multifamily mortgage that locks in a fixed rate for five years and has an option to extend another five years.
Freddie Mac, formally the Federal Home Loan Mortgage Corp., said it expected the loan product to appeal to borrowers who intend to rehabilitate or reposition their property in the market, or possibly to sell it, within five years.
The agency made the announcement at the Mortgage Bankers Association's commercial loan conference here.
Freddie Mac also announced a 75% increase in multifamily business in 1995 and a retooled securitization program for 1996.
In 1995, Freddie Mac funded $1.6 billion of multifamily loans, up from $913 million in 1994. - Compiled from wire reports