Homeowners Are Reducing Debt & Lowering Payments
According to recent analysis released by Freddie Mac, 81% of homeowners who refinanced during the second quarter of 2012 either maintained their same loan amount or brought cash to their closing and borrowed less.
Freddie Mac reported that 59% of borrowers refinanced their existing loan balance while 23% of borrowers refinanced less than they owed.
The median interest rate reduction for a 30-year fixed-rate loan came in at 1.5%.
Many of the refinanced loans were originated under HARP 2.0, with revised criteria that removed maximum loan-to-value.
Interestingly, the median age of loans that were refinanced was 5.5 years, indicating that most of the loans that were refinanced were originated around 2006-2007 when the national real estate market was red hot.
Source: DSNews.com article
August 2nd, 2012 Posted in Inside Real Estate
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