Seller Cost Loan Limit

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FREDDIE MAC ANNOUNCES YEAR 2002 LOAN PURCHASE LIMITS

As Many as 250,000 Families To Obtain Lower Cost Mortgage Financing

McLEAN, VA - Freddie Mac today announced that it will increase its single-family mortgage loan limit from $275,000 to $300,700 effective January 1, 2002. The 9.3 percent change is consistent with the increase in the national average home price between October 2000 and October 2001 as recorded by the Federal Housing Finance Board (FHFB).

"We are delighted," said Leland C. Brendsel, Chairman and CEO of Freddie Mac. The increase in the single-family mortgage loan limit makes it possible for additional hard working families to obtain the lowest cost mortgage financing available and make the American Dream more affordable.

Freddie Mac estimates that 250,000 additional families will obtain lower cost mortgage financing. In addition, Freddie Mac estimates that total mortgage interest savings for a borrower with a 30-year mortgage at the new conforming loan limit is approximately $37,000 over the life of the loan.

Effective for deliveries after January 1, 2002, the new loan limits for mortgages on one-to-four family properties will be:

$300,700 for mortgages on one-family properties (up from $275,000);
$384,900 for mortgages on two-family properties (up from $351,950);
$465,200 for mortgages on three-family properties (up from $425,400); and
$578,150 for mortgages on four-family properties (up from $528,700).

Under Freddie Mac's charter, maximum original loan amounts are 50 percent higher for first mortgages on properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands.

Freddie Mac is a stockholder-owned corporation established by Congress in support of homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened doors for one in six homebuyers in America.

FREDDIE MAC LOAN LIMIT DATA

November 28, 2001

	CONVENTIONAL LOAN LIMITS
	1999	2000	2001	2002
One-Family	$240,000	$252,700	$275,000	$300,700
Two-Family	$307,100	$323,400	$351,950	$384,900
Three-Family	$371,200	$390,900	$425,400	$465,200
Four-Family	$461,350	$485,800	$528,700	$578,150

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