Refinancers Opt for Fixed-Rate Mortgages

Are you a current homeowner who is interested in refinancing? If you are, surely you have many questions regarding how to go about doing so and which loan one is right for you. While everyone's situations are different, we can tell you that in the second quarter of 2012 more than 95% of refinancing borrowers chose a fixed-rate mortgage. And of those people, 30% chose to reduce their loan term. This information comes from Freddie Mac's Quarterly Product Transition Report.

Borrowers who refinanced with HARP tended to take out a long-term, fixed-rate mortgage. These fixed mortgage rates are averaging at 3.79% interest for a 30-year loan, and 3.04% interest for a 15-year loan. If you are indeed interested in taking advantage of these low fixed-rates, you could get an even lower rate by also shortening your term. This will reduce your loan balance faster and help you build home equity sooner.

Give Quest Loans a call if you need help getting the refinancing process started! 1-888-883-5252. We would love to help!