According to data gathered by financial, property and consumer information provider CoreLogic, a rising number of homeowners choose to made home payments at a faster rate, even if it means a substantial increase of their monthly payments.
From January to June 2010 alone, about 26% of homeowners selected 15-year fixed-rate mortgage as their refinancing scheme, while in 2009, only 18.5% of borrowers opted for 15-year refinancing term.
Homeowners selected the 15-year term because rates declined tremendously and they found that a new 15-year mortgage and their current loan is no longer unbearable for them.
Results of the survey conducted by Freddie Mac reveals that the average rate for 5-year fixed-rate mortgage is 3.86% for the week ending August 26, 2010.
Moreover, Mortgage Master noted that the 15-year mortgage also served as a forced savings account for homeowners that will help them pay down the principal at quicker time.
