Attributed to Frank Nothaft, Freddie Mac vice president and chief economist:
•"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. Fixed-rate mortgage rates hit new lows during December, with 30-year product averaging 3.4 percent and 15-year averaging 2.7 percent that month, according to our Primary Mortgage Market Survey®.
•"While all borrowers that refinance have benefitted, HARP has enabled many borrowers that traditionally would not have had access to refinance to obtain low rates and significantly reduce their interest rate and monthly payment. This increases the likelihood that these borrowers will continue to perform on their loan and remain homeowners."
Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter: @FreddieMac
Cash-out Refinance Analyses Information
These estimates come from a sample of properties on which Freddie Mac has funded two successive conventional, first-mortgage loans, and the latest loan is for refinance rather than for purchase. The analysis does not track the use of funds made available from these refinances. The analysis also does not track loans paid off in entirety, with no new loan placed.
•finance%2fdocs%2fqtrly_refi.xls">Quarterly Cash-Out Statistics •finance%2fdocs%2fcashout_vol_qtrly.xls">Quarterly Cash-Out Volume •finance%2fdocs%2fannual_censusrefi.xls">Annual Cash-out Statistics by Census Region and 10 Largest MSAs
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.
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