30-Year Mortgage May Fade Into History

Friday, 04 March 2011 | by Pat's Picks

The 30-year mortgage may be a relic soon. This is a two-years-delayed reaction to the financial crisis. With the decline of Fannie Mae and Freddie Mac, the New York Times says there won’t be the same forces in the mortgage market pushing toward availability of 30-year, fixed-rate mortgages with easy pre-payment terms: “The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product, housing experts on both sides of the political aisle say.” Things like the ability to lock in an interest rate could become add-ons that lenders will charge extra for.