The Friday Podcast: The Frankenstein Mortgage
The 30-year, fixed-rate mortgage -- the bedrock of American home ownership -- is a weird loan.
In an ordinary market, you'd have to pay a really high interest rate to get a 30-year fixed, if you could get it at all. It was government intervention, through Fannie Mae, that turned the loan into America's plain-vanilla mortgage.
On today's Planet Money, Bethany McLean and Joe Nocera (authors of All the Devils Are Here, a book on the financial crisis) walk us through the 30-year-fixed and the history of Fannie and Freddie. And they talk about where we go from here.