More than 10 million homeowners have refinanced their mortgages through Freddie Mac, Fannie Mae, or the Federal Housing Administration and Veterans Affairs since 2009. The cumulative savings in monthly mortgage payments for those 10 million borrowers equals $25 billion. Despite the refinancing boom, Freddie Mac’s senior vice president Paul Mullings says few people know the nation is in the midst of a refinance surge. According to Mullings, if you pick up a paper or turn on the TV, you’d think nobody can refinance a mortgage, though millions of borrowers have strengthened their household finances and improved their monthly cash flow by refinancing at historically low mortgage rates. During the second quarter of this year, nearly 70 percent of Freddie Mac’s business was refinance, with only 30 percent in purchase mortgages. More here.
