Terms To Know

Condo or Condominium - A Term Frequently Misunderstood

Condominium or "Condo" is sometimes thought of as a physical structure resembling an apartment of sort.  That's somewhat true, but actually, a "Condo" is a system of ownership of individual "units" in a multi-unit structure (in Real Estate terms).  This form of home ownership is really a joint ownership of commonly used elements such as sidewalks, hallways, stairs, and parking lots.   

Angelo Rhodes, Realtor Taylor Properties 240-535-1855 email: angelo@realestateuppermarlboro.com

So Who is Freddie Mac Anyway?

Freddie Mac is a nickname for the Federal Home Loan Mortgage Corporation (FHLMC).  Yes, they are a company, but also a government sponsored enterprise that congress created to keep the flow of credit going (economy) and to reduce risk to investors.  Their existence is a bit complicated, but they basically go out and buy mortgages, then resell those mortgages as a mortgage backed security.  They make their money by charging a fee on the loans they purchased which makes investors assume less risk for spending their own money.  Freddie Mac will guarantee that the loan gets paid back even if the borrower never repays the loan.  Sounds like insurance huh?

 

Angelo Rhodes, Realtor Taylor Properties 240-535-1855 email: angelo@realestateuppermarlboro.com