Freddie Mac: 27% of Borrowers Refinanced into Shorter Term

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Posted To: MND NewsWire

Freddie Mac borrowers who refinanced in the fourth quarter of 2012 overwhelmingly picked a fixed rate mortgage (FRM) and 27 percent of them chose to shorten their loan term . Freddie Mac's Quarterly Product Transition Report released Tuesday said 69 percent of borrowers kept the same term as the loan that they had paid off; 4 percent chose to lengthen their loan term, primarily those with 20 year terms, 22 percent of whom refinanced to 30 year mortgages. More than 95 percent of refinancing borrowers chose a fixed rate loan as did an even larger percentage of borrowers who already had an FRM. Only 2 percent of borrowers with 15 year or 30 year FRM chose a hybrid adjustable rate mortgage (ARM). Among borrowers with ARMs 17 percent went from one hybrid loan to another and 18 percent of those with...(read more)

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Source: http://www.mortgagenewsdaily.com/02122013_refinancing.asp

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