Last week Freddie Mac reported that the average rate for a 30-year fixed loan fell to its lowest level, since tracking mortgage rates since the 1950's, to 3.75 percent down from 3.78 percent last week. Followed closely by 15-year fixed mortgage rates that also dropped to new record lows last week going below 3 percent for the first time ever to 2.97 percent.
As a result this has led many borrowers to choose a 15-year loan when they refinanced their mortgage and at a level that has not seen in over 10 years.
Often, homeowners who are looking to refinance their mortgages into 15-year loans struggle with the fact that despite the quicker payoff their monthly payments will be higher, but with interest rates for 15-year mortgages being as low as they are, many are opting for the quicker version.
Freddie Mac has reported that 31% of homeowners who have refinanced their mortgages chose the 15-year loan this year which is the highest since 2002. A decade ago the average rate for a 15-year loan was between 6.5% and 5.5%, which was chosen by 35% of homeowners who refinanced their mortgages.