Orange County Register

Freddie Mac’s quarterly refinance report for Q3 shows nationwide …

• Share of refinance loans resulting in new mortgages that were 5% or more higher than the paid-off first mortgage balance — a measure of “cash-out” refinancing — fell to a six-year low of 36%.
• In the first three quarters of this year, total equity cashed out was approximately $60 billion.  Adjusting for inflation, smallest since 2000.
• Half of borrowers who refinanced a conventional loan lowered their annual mortgage interest rate by at least 17% as new interest rate was about 1.1 percentage points below the old rate.
• All told, the interest-rate reduction adds up to about $3 billion in payment savings over the first 12 months of the new loan.
• In the first nine months of 2009, interest rates on 30-year fixed-rate mortgages have averaged 5.1 — lowest in the 38-year history of Freddie Mac’s mortgage survey.
• These estimates come from a sample of properties where Freddie Mac has funded at least two successive loans

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