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More Homeowners Opt for Fixed-Rate Mortgage Products

Fixed-rate mortgages have become the dominant choice among borrowers looking to refinance their home loans, with more and more applicants gravitating toward shorter loan terms.

Freddie Mac released the results of its quarterly study on loan transition trends Monday. The GSE’s analysts found that in the third quarter of 2010, refinancing borrowers overwhelmingly chose fixed-rate loans, regardless of whether their original loan was an adjustable-rate mortgage (ARM) or a fixed-rate.

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