Fixed Rate Mortgages Still The Choice of Refinancers
Fixed Rate Mortgages Still The Choice of Refinancers
Fixed Rate Mortgages Still The Choice of Refinancers
Helpful
Tools
Mortgage
Calculator

Estimate your monthly payment for a home purchase or refinance
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about mortgage loans to find the one that's right for you
15 Year vs 30 Year
Loan Comparison

Compare payments between a 15 year and 30 year mortgage loan
Today's Mortgage
Rates

See today's current mortgage rates. Shop, compare and save.

September 11, 2012 (Chris Moore)

Regardless of whether their previous loan was a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM), borrowers chose a fixed-rate mortgage over 95 percent of the time when they refinanced their existing first mortgage during the second quarter of 2012 according to Freddie Mac’s Quarterly Product Transition Report.

Thirty percent of the borrowers who refinanced chose a 15-year or a 20-year mortgage to replace their original loan, down from thirty-five percent in the first quarter. Only three percent chose an adjustable rate loan. Sixty-seven percent of the borrowers stayed with the same term of their original loans.

By comparison, twenty-five percent of the borrowers who refinanced through the government’s Home Affordable Refinance Program (HARP) shortened their new loan term to either 15 or 20 years.

Borrowers whose original first mortgage was a hybrid ARM chose a fixed rate loan eighty-one percent of the time during the quarter, up from sixty-eight percent in the first quarter. Nineteen percent of borrowers who refinanced a hybrid ARM chose to refinance into the same type of product, down from thirty-two percent in the previous quarter.

Borrowers who refinanced through HARP and whose original loan was an ARM chose a fixed-rate mortgage ninety-five percent of the time while non-HARP borrowers stayed with another ARM about one-half of the time.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Fixed mortgage rates averaged 3.79 percent for 30-year loans and 3.04 percent for 15-year product during the second quarter in Freddie Mac’s Primary Mortgage Market Survey®, well below long-term averages and the lowest quarterly averages recorded in our survey. The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5.0 percent during the second quarter of 2012. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.”

Refinancing borrowers whose original loan was a 30-year FRM chose another 30-year FRM sixty-six percent of the time, a 20-year FRM twelve percent of the time and a 15-year FRM twenty-one percent of the time. That compares to sixty-four, fourteen, and twenty-one percent, respectively, in the first quarter.

Borrowers who originally had a 15-year FRM chose to stay with that product eighty-six percent of the time while eleven percent lengthened the term of their loans to 30 years and one percent lengthened their loans to 20 years. That compares to eighty-nine, eight, and one percent, respectively, from the previous quarter.

Tags: Freddie Mac, refinancing borrowers, Transition Report, fixed rte mortgage, adjustable rate mortgage, hybrid ARM, interest rate savings

Source:
Freddie Mac

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools
Mortgage
Calculator

Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about the different types of home loans
15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
Rates

See today's mortgage rates. Shop, compare and save.

September 11, 2012 (Chris Moore)

Regardless of whether their previous loan was a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM), borrowers chose a fixed-rate mortgage over 95 percent of the time when they refinanced their existing first mortgage during the second quarter of 2012 according to Freddie Mac’s Quarterly Product Transition Report.

Thirty percent of the borrowers who refinanced chose a 15-year or a 20-year mortgage to replace their original loan, down from thirty-five percent in the first quarter. Only three percent chose an adjustable rate loan. Sixty-seven percent of the borrowers stayed with the same term of their original loans.

By comparison, twenty-five percent of the borrowers who refinanced through the government’s Home Affordable Refinance Program (HARP) shortened their new loan term to either 15 or 20 years.

Borrowers whose original first mortgage was a hybrid ARM chose a fixed rate loan eighty-one percent of the time during the quarter, up from sixty-eight percent in the first quarter. Nineteen percent of borrowers who refinanced a hybrid ARM chose to refinance into the same type of product, down from thirty-two percent in the previous quarter.

Borrowers who refinanced through HARP and whose original loan was an ARM chose a fixed-rate mortgage ninety-five percent of the time while non-HARP borrowers stayed with another ARM about one-half of the time.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Fixed mortgage rates averaged 3.79 percent for 30-year loans and 3.04 percent for 15-year product during the second quarter in Freddie Mac’s Primary Mortgage Market Survey®, well below long-term averages and the lowest quarterly averages recorded in our survey. The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5.0 percent during the second quarter of 2012. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.”

Refinancing borrowers whose original loan was a 30-year FRM chose another 30-year FRM sixty-six percent of the time, a 20-year FRM twelve percent of the time and a 15-year FRM twenty-one percent of the time. That compares to sixty-four, fourteen, and twenty-one percent, respectively, in the first quarter.

Borrowers who originally had a 15-year FRM chose to stay with that product eighty-six percent of the time while eleven percent lengthened the term of their loans to 30 years and one percent lengthened their loans to 20 years. That compares to eighty-nine, eight, and one percent, respectively, from the previous quarter.

Tags: Freddie Mac, refinancing borrowers, Transition Report, fixed rte mortgage, adjustable rate mortgage, hybrid ARM, interest rate savings

Source:
Freddie Mac

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

September 11, 2012 (Chris Moore)

Regardless of whether their previous loan was a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM), borrowers chose a fixed-rate mortgage over 95 percent of the time when they refinanced their existing first mortgage during the second quarter of 2012 according to Freddie Mac’s Quarterly Product Transition Report.

Thirty percent of the borrowers who refinanced chose a 15-year or a 20-year mortgage to replace their original loan, down from thirty-five percent in the first quarter. Only three percent chose an adjustable rate loan. Sixty-seven percent of the borrowers stayed with the same term of their original loans.

By comparison, twenty-five percent of the borrowers who refinanced through the government’s Home Affordable Refinance Program (HARP) shortened their new loan term to either 15 or 20 years.

Borrowers whose original first mortgage was a hybrid ARM chose a fixed rate loan eighty-one percent of the time during the quarter, up from sixty-eight percent in the first quarter. Nineteen percent of borrowers who refinanced a hybrid ARM chose to refinance into the same type of product, down from thirty-two percent in the previous quarter.

Borrowers who refinanced through HARP and whose original loan was an ARM chose a fixed-rate mortgage ninety-five percent of the time while non-HARP borrowers stayed with another ARM about one-half of the time.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Fixed mortgage rates averaged 3.79 percent for 30-year loans and 3.04 percent for 15-year product during the second quarter in Freddie Mac’s Primary Mortgage Market Survey®, well below long-term averages and the lowest quarterly averages recorded in our survey. The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5.0 percent during the second quarter of 2012. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.”

Refinancing borrowers whose original loan was a 30-year FRM chose another 30-year FRM sixty-six percent of the time, a 20-year FRM twelve percent of the time and a 15-year FRM twenty-one percent of the time. That compares to sixty-four, fourteen, and twenty-one percent, respectively, in the first quarter.

Borrowers who originally had a 15-year FRM chose to stay with that product eighty-six percent of the time while eleven percent lengthened the term of their loans to 30 years and one percent lengthened their loans to 20 years. That compares to eighty-nine, eight, and one percent, respectively, from the previous quarter.

Tags: Freddie Mac, refinancing borrowers, Transition Report, fixed rte mortgage, adjustable rate mortgage, hybrid ARM, interest rate savings

Source:
Freddie Mac

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.