Real Estate Insight

• The latest Freddie Mac quarterly survey of homeowners who refinanced found that morethan one in three borrowers who refinanced from a 30-year fixed-rate loan opted toreplace it with 15-year or 20-year mortgages at near-record low rates.
  
• Homeowners considering refinancing into a shorter-term mortgage must have theincome or financial reserves sufficient to pay the extra money each month.
  
• Borrowers not only need to have the income or financial reserves, they also have toqualify for a refinance, have the credit score needed, and the home appraisal to supportit.
  
• For some low-cost refi programs, lenders want to see at least 25 percent equity in thehouse. Higher FICO credit score requirements by Fannie Mae and Freddie Mac areanother impediment, as both companies reserve their best rates for borrows with FICO scores of 740 or higher.