Rate effective due to recent decision to The Federal National Mortgage Association’s discontinuation of its free market auction system for commitments to purchase conventional home mortgages.
Nashville – The maximum effective interest rate for home loans has been set at 7.61%, according to the Tennessee Department of Commerce and Insurance commissioner Greg Gonzales.
The rate is equal to four percentage points above the index of market yields of long-term government bonds adjusted to a 30 year maturity by the U. S. Department of the Treasury. For the most recent weekly average statistical data available preceding the date of this announcement, the calculated rate is3.61%.
