Mortgage Money Expected to Flow Here Next Week: Senate Approves Freeing of D.C. Mortgage
The Senate approved legislation last night that places a new permanent lid on mortgage interest rates in the District of Columbia and assures an end to the two-week freeze on home mortgage lending in the city.</br></br>The measure now goes to the White House, where a spokesman said President Carter is expected to ÛÏact quicklyÛ and sign the bill.</br></br>The new 15 percent mortgage interest rate ceiling may be law by Monday morning, and all 66 mortgage banking firms in the city and about 12 the DistrictÛªs 16 savings and loan associations are expected to resume making home loans immediately, according to mortgage banking and savings and loan industry officials.</br></br>But lending officials said prospective home buyers can expect to pay record-high interestÛÓ14 percent or more in some casesÛÓand may be required to produce down payments of 25 percent or more of their new homeÛªs purchase price.</br></br>In addition, the officials said, many of the estimated 1,000 prospective home buyers here who had their1 loan settlements delayed by the funding freeze may now face bigger than expected monthly mortgage payments because of interest rates that have climbed since their sale.