Fannie Mae and Freddie Mac to ease US mortgage worries

With all the recent troubles with subprime mortgages, Fannie Mae and Freddie Mac are now trying to develop a new kind of loan for all those people with a high-risk mortgage. They are trying to help thousands of people who are at risk of losing their homes, as repossessions in the U.S has hit an all time high.

A subprime mortgage offers higher than normal loans for people that have bad credit or low wages, and we all have heard that these kinds of mortgages have seen their fair share of troubles. Now the two companies, Fannie Mae and Freddie Mac plan to introduce a new kind of mortgage that could run for 30 or even 40 years.

This would make the payments much lower than that of a normal mortgage, this is hoped to help slow down the high repossessions rate.

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