According to Freddie Mac, 84% of refinancing homeowners have continued to lower their principal balance by paying more at the point of sale. 46% of borrowers held the same loan amount, while 39% of borrowers lowered their principal balance. Interest rate reductions reached its largest percentage of reductions in all of Freddie Mac’s history. Freddie Mac’s chief economist and vice president, Frank Nothaft said, “on average, borrowers who refinanced reduced their interest rate by about 1.8 percentage points. On a $200,000 loan, that translates into saving about $3,600 in interest during the next 12 months.” More here
