Despite what some loan originators may say to you, Freddie Mac seems to be quite busy. reports that HARP Mortgage refinances totaled about 1/3 of the total refinances Freddie Mac funded in the second quarter of 2012.  This is the most they’ve funded since the inception of the HARP 2.0 program.  Many homeowners across the nation are and have been excited about the newer version of the HARP Loan program.  And rightfully so!  This program has helped homeowners take advantage of the current low interest rates.  (Although, as of today, (8/2), rates have risen slightly.)  But this should not deter homeowners as rates are still low – relatively speaking.

According to a Freddie Mac analysis, 81% of homeowners who refinanced their mortgage either maintained the same loan amount or lowered their principal balance by paying in at the closing table in the second quarter.

This is great news for homeowners and loan originators across the country as this is proving that the model is working! goes on to state the following:
(you can read the full article here:

  • Of those borrowers who refinanced, 59% maintained the same loan amount, while 23% reduced their principal balance. The share of borrowers who kept the same amount was the highest in the 27-year history of the analysis.
  • The net dollars of home equity converted to cash as part of a refinance, adjusted for consumer-price inflation, fell to the lowest level since the second quarter of 1995.
  • About $5 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages, substantially less than during the peak cash-out refinance volume of $84 billion during the second quarter of 2006.
  • The median interest rate reduction for a 30-year, fixed-rate mortgage came in at about 1.5%, the largest percent reduction recorded in the history of the analysis.
  • “On a $200,000 loan, that translates into saving about $2,900 in interest during the next 12 months,” Freddie’s Chief Economist Frank Nothaft, said. “Fixed-rate mortgage rates hit new lows during June, with 30-year product averaging 3.68% and 15-year averaging 2.95% that month.”