Definition
The Federal Home Loan Mortgage Corporation (Freddie Mac) is a government-sponsored enterprise, similar to Fannie Mae, that purchases mortgages from lenders and packages them into mortgage-backed securities. Together with Fannie Mae, Freddie Mac supports the majority of the US mortgage market and establishes conforming loan standards.
Related Mortgage Terms
- Conforming Loan
A mortgage that meets the guidelines set by Fannie Mae and Freddie Mac, includin...
- Fannie Mae
The Federal National Mortgage Association (Fannie Mae) is a government-sponsored...
- Secondary Market
The market where existing mortgages are bought and sold between lenders, investo...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.