Howard Business Report - Mortgages - Hawaii News Now - KGMB and KHNL

Howard Business Report - Mortgages

(HawaiiNewsNow) - There is a fascinating new trend in home mortgages.  For 4 generations the default home loan in America has been the 30-year fixed-rate mortgage.  Fixed-rate mortgages still account for 95% of all home loans.  Now the Freddie Mac quarterly product transition report says, the 15-year note is suddenly "hot".

 In the second quarter, of all the Americans who refinanced their 30-year mortgages, 37% chose 15 or 20 year notes.

The interest rate on a 15-year fixed mortgage was eight tenths of a percent lower than a 30-year note.  Even at a much lower rate, your monthly payment is much larger for a 15-year mortgage, although you build equity faster. A 15 year mortgage looks good to someone who has secure income but doesn't feel comfortable putting money into other investments.

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