Freddie Mac reports that more borrowers who refinance today are opting to switch from a 30-year fixed mortgage to a fixed-rate loan with a term of only 15 or 20 years. The trend, which is at a level not seen since 2004, partially is the result of a shift in attitudes by consumers — who no longer view their homes as an investment and who are working to reduce their debt. Refi patterns in the past year, by contrast, have seen more borrowers cash out some of their equity.
[Sources: American Banker; Information, Inc.]