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Obama Got 'Good Deal' on Mortgage

Better-than-average rate on $1.32M loan raises eyebrows; bank says it's not unusual

By Jim O'Neill,  Newser User

Posted Jul 2, 2008 11:32 AM CDT
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(Newser) – Barack Obama is taking heat for accepting a better-than-average interest rate that saves him $300 a month on his $1.32 million mortgage, the Washington Post reports. The 30-year, fixed 5.625% rate on the Democrat's Chicago home was under the 6% being offered other buyers in June 2005 by Northern Trust, and included no origination fee or discount points.

An Obama spokesman said the bank lowered the rate to compete with other lenders; Northern Trust said it aims to " pursue successful individuals." Questions arise, however, if the loan to a public official could be classified as an illegal gift. "Do they do business like that for people who are not congressmen? If they don't, that's a problem," said one legal expert.

Democratic presidential candidate, Sen. Barack Obama, D-Ill., center, and his wife arrive at a park to watch their daughter Malia's soccer game in Chicago on Tuesday, July 1, 2008.
Democratic presidential candidate, Sen. Barack Obama, D-Ill., center, and his wife arrive at a park to watch their daughter Malia's soccer game in Chicago on Tuesday, July 1, 2008.   (AP Photo/Jae C. Hong)
People stop and take pictures in front of the home of Democratic presidential candidate, Sen. Barack Obama D-Ill., in Chicago.
People stop and take pictures in front of the home of Democratic presidential candidate, Sen. Barack Obama D-Ill., in Chicago.   (AP Photo/Alex Brandon)
Democratic presidential candidate, Sen. Barack Obama, D-Ill., center, greets people on his doorstep at his home in Chicago.
Democratic presidential candidate, Sen. Barack Obama, D-Ill., center, greets people on his doorstep at his home in Chicago.   (AP Photo/Russel A. Daniels)
Democratic presidential candidate, Sen. Barack Obama, D-Ill., speaks during a news conference after he toured the East Community Ministry in Zanesville, Ohio, Tuesday, July 1.
Democratic presidential candidate, Sen. Barack Obama, D-Ill., speaks during a news conference after he toured the East Community Ministry in Zanesville, Ohio, Tuesday, July 1.   (AP Photo/Jae C. Hong)
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Sweetheart deal or just good business?
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The Obama mortgage deal
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Barack Obama • presidential campaign • mortgage rates • Senate Ethics Committee • Northern Trust

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