About 60 percent of homebuyers in Q4 2011 took out 30-year, fixed-rate loans. Three years ago, the figure was closer to 90 percent. Instead, homeowners opted more and more for 15- or 20-year loans. A quarter of people refinancing from 30-year loans opted for 15-year fixed-loans.
Despite the fact that the typical payment on a 15-year loan is 50 percent higher than on a 30-year mortgage, most homeowners chose 15-year loans because the interest rate is significantly lower — 3.41% for a 15-year mortgage, vs. 4.05% for a 30-year (on Feb.22, 2012).
SOURCE: VARbuzz; The Mortgage Reports