More than a third of homeowners who have refinanced their homes recently have shortened their loan terms, according to data released by mortgage giant Freddie Mac. That's the largest percentage of mortgage refinances converted from 30-year, fixed rate loans to 15- or 20-year loans since 2003.
And even if they don't opt for a shorter-term loan, some 95% of homeowners who refinanced in the second quarter chose a fixed-rate loan over an adjustable-rate mortgage, Freddie Mac's data show. Why are so many people choosing these options? Read more in my Interest.com post, More homeowners shorten terms when refinancing.