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About Refinance Report

Freddie Mac compiles statistics and produces its quarterly Refinance Report based on loans refinanced in our retained portfolio.

The Refinance Reports analysis uses a sample of properties where Freddie Mac has funded two successive conventional, first-mortgage loans, and the latest loan is for refinance rather than for purchase. The analysis does not track the use of funds made available from these refinances. The analysis also does not track loans paid off in entirety, with no new loan placed. Some loan products, such as 1-year ARMs and balloons, are based on a small number of transactions.

Starting with the first quarter of 2013, we combined our previous Cash-out Refinance Report and Refinance Product Transition Report into one Refinance Report to provide greater context around refinance behavior.

At this same time, the calculation of the principal balance at payoff of the previous loan was modified. Previously, the payoff balance was calculated as the amount due based on the loan’s amortization schedule, and “cash-in” was defined as a new loan amount that was less than the scheduled amortization amount. Data for 1994 to current have been recalculated using the actual payoff amount of the old loan, with an allowance for rounding down the principal at refinance; thus, from 1994 to present, “cash-in” is defined as a new loan amount that is at least $1,000 less than the payoff principal balance of the old loan. Data are presented under both methods for 1994 for comparison purposes.

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