February 3, 2012 – Freddie Mac released the results of its fourth quarter refinance analysis showing homeowners who refinance continue to strengthen their fiscal house. In the fourth quarter of 2011, 85 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table, a 26-year high. "The typical borrower who refinanced reduced their interest rate by about 1.4 percentage points,” said Frank Nothaft, Freddie Mac vice president and chief economist. “On a $200,000 loan, that translates into saving $2,700 in interest during the next 12 months.”
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