Obama takes heat on mortgage deal

Republicans pounced on reports of Barack Obama's bargain mortgage Wednesday as the Democratic presidential nominee's campaign maintained the deal was aboveboard.

Obama landed a discounted interest rate from Chicago-based Northern Trust when he bought his $1.65 million Hyde Park mansion in 2005, shortly after taking his U.S. Senate seat.

The 5.625 percent rate on Obama's $1.32 million, 30-year mortgage was below the average 6 percent for such loans at the time, The Washington Post reported. Republicans say the discount raises questions about whether Obama got special treatment because of his senate seat.

"It is quite a coincidence," said Chris Taylor, a spokesman for the Republican National Committee.

But Obama's campaign shot back, saying the Democratic presidential contender didn't get a special deal.

Obama snagged a better-than-average rate because he leveraged a competing mortgage offer and pledged to invest at Northern Trust, said campaign spokesman Ben LaBolt. At the time, Obama's wealth had dramatically increased thanks to a multimillion dollar book deal and salary boost.

"The Obamas received the same rate as would have been available to anyone with their financial profile and who had a competitive offer from another institution," LaBolt said.

Northern Trust spokesman John O'Connell said, "The loan was consistent with the way we structure Northern Trust rates."

But he declined to provide additional detail.

Obama's 2005 home purchase has been the focus of significant attention. He bought the property with the help of Antoin "Tony" Rezko, who was convicted last month on corruption charges for fixing state contracts in Gov. Rod Blagojevich's administration.

Rezko purchased the vacant lot next door at the same time Obama bought the house. Both were being sold by the same owner. Obama ended up getting the house for $300,000 off the asking price. Rezko paid the full asking price for the lot.

Obama called the move "bone-headed," but said he didn't get a deal on the land because Rezko purchased the adjacent lot.

Since his federal indictment, Obama has distanced himself from Rezko, who had been one of his earliest supporters and fundraisers.