A study by Freddie Mac has found that a growing number of borrowers were looking to cut their term when they refinanced their mortgage in the second quarter of 1998.Nearly 31% of borrowers whose loan was originally a 30-year fixed-rate mortgage elected to take a 15-year fixed-rate mortgage, the highest percentage since the second quarter of 1996. In the first quarter 1998, 29% of 30-year FRM borrowers refied into a 15-year FRM. Meanwhile, 62% of 30-year FRM borrowers took that same loan when refinancing, down from 64% in the first quarter. Of the adjustable-rate borrowers who refinanced a loan, the study found 65% moving into a 30-year FRM, while 27% picked a 15-year FRM, 6% a 20-year FRM, and just 1% another ARM.
Processing Content
