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Low Interest Rates Make Fixed Rate Loans the Choice of Refinancers
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You're Now Reading:
Low Interest Rates Make Fixed Rate Loans the Choice of Refinancers
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Low Interest Rates Make Fixed Rate Loans the Choice of Refinancers
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May 19, 2011 (Jeff Alan)

The continuing historically low mortgage interest rates have prompted refinancing borrowers to overwhelmingly choose fixed rate mortgage loans over adjustable rate mortgages (ARM). In the first quarter of 2011, when borrowers financed their existing mortgage, over 95 percent chose a fixed rate loan according to statistics compiled by Freddie Mac.

According to the recently released Quarterly Product Transition Report, an increasing share of refinancing borrowers chose to also shorten their loan terms. Of borrowers who paid off a 30 year fixed rate loan, 22 percent opted for a 15 year fixed rate loan and 12 percent opted for a 20 year fixed rate loan.

Refinancing borrowers who paid off a 20 year fixed rate loan chose a lesser 15 year fixed rate loan 63 percent of the time, while 8 percent retained a loan of the same length.

Frank Nothaft, vice president and chief economist of Freddie Mac explained, “The mortgage rate on 15-year fixed was about three-fourths percentage point below that on 30-year fixed during the first quarter. For borrowers motivated to refinance by low interest rates, they could obtain even lower rates by shortening their term. In the first quarter we saw the largest share of borrowers shortening their term while refinancing in seven years.”

Borrowers who had a hybrid ARM chose to refinance to a fixed rate mortgage 84 percent of the time in the first quarter. Of those, 74 percent chose a 30 year fixed rate mortgage, 4 percent chose a 20 year fixed rate mortgage, and 6 percent chose a 15 year fixed rate mortgage. Sixteen percent felt comfortable enough with their ARMs to chose the same loan again.

Refinancing borrowers who had 1-Year ARMs chose to refinance to a fixed rate mortgage 89 percent of the time. Sixty-two percent of those chose a 30 year fixed rate mortgage, 22 percent chose a 15 year fixed rate mortgage, and the reminder chose 20 year fixed rate mortgages.

Those borrowers that refinanced balloon loans did so without hesitation as 96 percent chose a fixed rate mortgage. Sixty four percent chose a 30 year fixed rate mortgage, 21 percent chose a 15 year fixed rate mortgage, and 11 percent went with a 20 year fixed rate mortgage.

“Fixed mortgage rates averaged 4.85 percent for 30-year loans and 4.12 percent for 15-year product during the first quarter in Freddie Mac’s Primary Mortgage Market Survey®, well below long-term averages,” Nothaft added. “The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 6 percent at the end of 2010. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.”

Tags: Freddie Mac, 30 year fixed rate mortgage, 20 year fixed rate mortgage, 15 year fixed rate mortgage, adjustable rate mortgage, ARM, hybrid ARM, balloon loan

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 MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at Mortgageloanrateupdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
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.
Home Buying
Tips
Home Selling
Tips
About
Mortgages
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Calculator
Mortgage
Rates

May 19, 2011 (Jeff Alan)

The continuing historically low mortgage interest rates have prompted refinancing borrowers to overwhelmingly choose fixed rate mortgage loans over adjustable rate mortgages (ARM). In the first quarter of 2011, when borrowers financed their existing mortgage, over 95 percent chose a fixed rate loan according to statistics compiled by Freddie Mac.

According to the recently released Quarterly Product Transition Report, an increasing share of refinancing borrowers chose to also shorten their loan terms. Of borrowers who paid off a 30 year fixed rate loan, 22 percent opted for a 15 year fixed rate loan and 12 percent opted for a 20 year fixed rate loan.

Refinancing borrowers who paid off a 20 year fixed rate loan chose a lesser 15 year fixed rate loan 63 percent of the time, while 8 percent retained a loan of the same length.

Frank Nothaft, vice president and chief economist of Freddie Mac explained, “The mortgage rate on 15-year fixed was about three-fourths percentage point below that on 30-year fixed during the first quarter. For borrowers motivated to refinance by low interest rates, they could obtain even lower rates by shortening their term. In the first quarter we saw the largest share of borrowers shortening their term while refinancing in seven years.”

Borrowers who had a hybrid ARM chose to refinance to a fixed rate mortgage 84 percent of the time in the first quarter. Of those, 74 percent chose a 30 year fixed rate mortgage, 4 percent chose a 20 year fixed rate mortgage, and 6 percent chose a 15 year fixed rate mortgage. Sixteen percent felt comfortable enough with their ARMs to chose the same loan again.

Refinancing borrowers who had 1-Year ARMs chose to refinance to a fixed rate mortgage 89 percent of the time. Sixty-two percent of those chose a 30 year fixed rate mortgage, 22 percent chose a 15 year fixed rate mortgage, and the reminder chose 20 year fixed rate mortgages.

Those borrowers that refinanced balloon loans did so without hesitation as 96 percent chose a fixed rate mortgage. Sixty four percent chose a 30 year fixed rate mortgage, 21 percent chose a 15 year fixed rate mortgage, and 11 percent went with a 20 year fixed rate mortgage.

“Fixed mortgage rates averaged 4.85 percent for 30-year loans and 4.12 percent for 15-year product during the first quarter in Freddie Mac’s Primary Mortgage Market Survey®, well below long-term averages,” Nothaft added. “The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 6 percent at the end of 2010. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.”

Tags: Freddie Mac, 30 year fixed rate mortgage, 20 year fixed rate mortgage, 15 year fixed rate mortgage, adjustable rate mortgage, ARM, hybrid ARM, balloon loan

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 LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
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.

May 19, 2011 (Jeff Alan)

The continuing historically low mortgage interest rates have prompted refinancing borrowers to overwhelmingly choose fixed rate mortgage loans over adjustable rate mortgages (ARM). In the first quarter of 2011, when borrowers financed their existing mortgage, over 95 percent chose a fixed rate loan according to statistics compiled by Freddie Mac.

According to the recently released Quarterly Product Transition Report, an increasing share of refinancing borrowers chose to also shorten their loan terms. Of borrowers who paid off a 30 year fixed rate loan, 22 percent opted for a 15 year fixed rate loan and 12 percent opted for a 20 year fixed rate loan.

Refinancing borrowers who paid off a 20 year fixed rate loan chose a lesser 15 year fixed rate loan 63 percent of the time, while 8 percent retained a loan of the same length.

Frank Nothaft, vice president and chief economist of Freddie Mac explained, “The mortgage rate on 15-year fixed was about three-fourths percentage point below that on 30-year fixed during the first quarter. For borrowers motivated to refinance by low interest rates, they could obtain even lower rates by shortening their term. In the first quarter we saw the largest share of borrowers shortening their term while refinancing in seven years.”

Borrowers who had a hybrid ARM chose to refinance to a fixed rate mortgage 84 percent of the time in the first quarter. Of those, 74 percent chose a 30 year fixed rate mortgage, 4 percent chose a 20 year fixed rate mortgage, and 6 percent chose a 15 year fixed rate mortgage. Sixteen percent felt comfortable enough with their ARMs to chose the same loan again.

Refinancing borrowers who had 1-Year ARMs chose to refinance to a fixed rate mortgage 89 percent of the time. Sixty-two percent of those chose a 30 year fixed rate mortgage, 22 percent chose a 15 year fixed rate mortgage, and the reminder chose 20 year fixed rate mortgages.

Those borrowers that refinanced balloon loans did so without hesitation as 96 percent chose a fixed rate mortgage. Sixty four percent chose a 30 year fixed rate mortgage, 21 percent chose a 15 year fixed rate mortgage, and 11 percent went with a 20 year fixed rate mortgage.

“Fixed mortgage rates averaged 4.85 percent for 30-year loans and 4.12 percent for 15-year product during the first quarter in Freddie Mac’s Primary Mortgage Market Survey®, well below long-term averages,” Nothaft added. “The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 6 percent at the end of 2010. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.”

Tags: Freddie Mac, 30 year fixed rate mortgage, 20 year fixed rate mortgage, 15 year fixed rate mortgage, adjustable rate mortgage, ARM, hybrid ARM, balloon loan

Source:
Freddie Mac

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
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 MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
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.