High Mortgage Refinance Activity in the First Quarter

The share of refinancing mortgages in the total volume of single-family home loans originated in the first quarter of 2015 was 63%. For the whole of 2014, this share was approximately 52%. This data was presented in an official report of Freddie Mac.

The share of loans with cash-out refinancing in the total volume of refinancing mortgages was 27%. This was close to the level from the previous two quarters. In the fourth quarter of last year, this share was 29% while in the third quarter of 2014, it was 27%. For comparison, the share of cash-out refinancing in the first quarter of last year was 17%. Even though the cash-out transactions currently account for over a quarter of mortgage refinance activity, their share remains well below the peak of 89% in second quarter of 2006.

Refinance at
Loan Type

Please enable JavaScript for the best experience.

The estimate of Freddie Mach shows that during the first quarter of this year the net dollar amount of cashed out home equity was $7.7 billion. This is slightly below the revised figure for the fourth quarter of 2014 – $7.6 billion. For comparison, during the peak in cash-out mortgage refinancing in the second quarter of 2006, the net dollar amount of cashed out home equity was $84 million.

Out of all borrowers who refinanced their mortgages in the first quarter of 2015, the share of those who chose to shorten the term of their loan was 34%. The share of borrowers who used the HARP program for refinancing and opted for a shorter loan term was 36%.

On average, borrowers who refinanced their mortgage in the first quarter of the year received an average interest rate reduction of 1.2%. On a $200,000 loan, the average interest payment reduction was 24% or $2,500 over the course of the next year. Borrowers who took advantage of the HARP program got average interest rate reduction of 1.8%.



Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Facebook Iconfacebook like buttonTwitter Icontwitter follow button