Low mortgages have borrowers cutting their mortgage loan time in half. Approximately 16% of the fixed-rate mortgages sold to Freddie Mac in the third quarter were 15-year loans, as opposed to the standard 30 year mortgage loans. This percentage is up almost 10% from 2011, according to the agency’s data. 15 year mortgages have been increasing since 2007 making up 8.5% of refinancing. Stu Feldstein, who tracks mortgage data at SMR Research and who is also the president of the company said, “the 15-year loan has gone from really being almost a non-issue item to a new trend”. Researchers suggest the reason 15 year mortgages are becoming much more desirable is due to the change in lower interest rates. More here
