Why Fewer take 30-Year Mortgage

Fewer Opt For 30-Year Fixed Rate Mortgage

According to Freddie Mac, as mortgage rates have dropped this year, so have loan terms.
Between April-June 2011, of all the Freddie Mac-to-Freddie Mac refinances, 37% of homeowners who started with a 30-year fixed transitioned into 15-year or 20-year fixed rate loans. It's the 30-year fixed fastest abandonment rate since 2003.
There's no surprise about why it's happening, either.
Last quarter, the gap between 30-year fixed rate mortgage rate and the rest of the loan market got wide. The spread between the 30-year fixed and 15-year fixed, for example, averaged 80 basis points.That's the widest gap in recorded history.
15-year mortgages are "on sale" and homeowners are taking advantage of it.

For a quote on a 15 year fixed-rate mortgage call 443-320-9793.