(November 16, 2011) Over ninety-five percent of borrowers who refinanced their home loans in the third quarter of 2011 picked a fixed rate loan according to Freddie Mac’s Quarterly Product Transition Report regardless of whether their previous loan was a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM).

Borrowers also continued to take advantage of the historically low interest rates and shortened the term of their loans at even higher rates in the third quarter than they did in the second quarter.

Forty percent of the borrowers who refinanced a 30 FRM chose a 15-year or a 20- year mortgage to replace their original loan, the highest share of borrowers to do so since the second quarter of 2003, up from thirty-seven percent in the second quarter.

Read the whole story at LoanRateUpdate.com.