fbpx Skip nav to main content.

What is a Fannie Mae Fixed-Rate Mortgage product?

A Fannie Mae Fixed Rate Mortgage product refers to a type of mortgage loan that is originated, funded, and serviced by a lender but is ultimately sold to Fannie Mae, a government-sponsored enterprise (GSE) established to provide stability and liquidity to the mortgage market.

With a Fannie Mae Fixed Rate Mortgage, the interest rate remains constant for the entire term of the loan, offering borrowers predictability and stability in their monthly mortgage payments. These loans typically have terms ranging from 10 to 30 years, allowing borrowers to choose a repayment schedule that best suits their financial situation.

Fannie Mae Fixed Rate Mortgages are popular among homebuyers and homeowners who prefer the security of knowing that their mortgage payments will remain the same over time, regardless of changes in the broader economy or fluctuations in interest rates.

Similar to Freddie Mac, Fannie Mae does not directly lend money to consumers. Instead, it purchases mortgage loans from lenders and packages them into mortgage-backed securities (MBS) that are sold to investors. This process helps to provide liquidity to the mortgage market and promote homeownership by ensuring that lenders have the funds they need to continue originating new loans.