Refinancing borrowers Shun weapons in Q4. Choose the shorter time limits of the loan

Americans
increasingly are turning away from mortgage interest in the products
refinancing, in accordance with the Quarterly product transition report issued by the
Freddie Mac.  The increasing share of refinancing borrowers also decided to improve their conditions of loans in the fourth quarter.

IN THE
the fourth quarter of 2010, fixed-rate mortgages (FRM, probe) accounted for more than 95
percent of all loans used to refinance. 

Frank Nothaft, Freddie Mac Vice President commented and Economist
that "a fixed interest rate mortgages still moves lower during the first part of
fourth quarter, reaching 4 17 percent for 30 years in the mortgage
Fishing in the primary market survey by Freddie Mac mortgage ® and the lowest fixed
rates since the early 1950s.  It is not
the wonder of borrowers snaps to a fixed interest rate loans.

In the fourth quarter, these
usually the refinancing mortgage fixed rate mortgage fixed rate selected another of the same or
shorter period.

Borrowers who odstawiony a 30-year fixed-rate loan 32% chose the year 15 or 20 credit, most such participation from the first quarter of 2004 of borrowers who refinanced loan 20 years 70 percent chose the 15-year loan, the highest such interest found in the analysis of Freddie Mac's quarterly. Eighty-seven percent of the
the 15-year loan is refinanced to the same product type, as 67%
30 years of borrowers.  Those who were
However, the refinancing of the 20 year, 70 percent of collected shorter amortization
Note 15-year.

The possibility of a shorter time limits also was defined in the
the annual 2010. General, 2010 had the largest percentage of borrowers
from 2003, which Reduced their loan refinancing after long-term fixed interest rate.

Nothaft added, "the rate of the mortgage on the 15-year fixed was five percentage points below the driver of the enlargement, which, at 30 years fixed in the fourth quarter. For borrowers refinance motivated by low interest rates could get even lower rates by shortening them. In 2010 we have seen the largest share of borrowers reduce their during refinancing since 2003. "

These estimates come from the sample properties on which Freddie Mac
Finance at least two consecutive loans and loans for refinance
not for your home purchase. Appropriate, include the data as an amortizing
well as an interest only loan payment or option. Loan of some products, such as
1 year arms and balloons, are based on a small amount of the transaction. During The
2010 ARM share of all of the applications was 6 percent of the Freddie Mac on this
both purchase and refinance applications.