95% of borrowers go for fixed rates

Certainly this is no surprise — given how low rates are, locking in at a fixed rate is the best move.  Terms are even more favorable for 15 or 20 year terms.  Dreambuilder can help you get started today!

WASHINGTON – Nov. 16, 2010 – Ninety-five percent of U.S. borrowers in the third quarter chose fixed-rate contracts when refinancing, the U.S. Federal Loan Mortgage Corp. said Monday.

Consumers who previously had 30-year loans or adjustable-rate loans most often chose 30-year, fixed-rate loans when refinancing, while those with 15-year or 20-year loans previously stuck with shorter terms, Freddie Mac said.

“We ended the second quarter excited that borrowers could lock in a rate of 4.75 percent for 30 years, and we ended the third quarter with rates at just a touch over 4.25 percent. It’s no wonder borrowers are attracted to fixed-rate loans,” said Frank Nothaft, Freddie Mac vice president and chief economist.

Copyright United Press International 2010

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