More Homeowners Refinancing to Shorter Mortgages

As mortgage interest rates dangle near record lows, more homeowners are doing away with their 30-year loans in favor of shorter alternatives, reports the L.A. Times. And when you can get away with a seven-year fixed-rate mortgage for just 3 percent, why not? That is, provided you have the cash to take advantage of this rare opportunity.

Want to refinance into a seven-year fixed-rate mortgage at 2.99 percent? Or how about 10 or 15 years fixed in the mid-3 percent range?

These may sound suspiciously like teaser quotes, with tricks in the fine print, but they are in fact signs of an important shift among American homeowners: Not only have they been refinancing at a robust pace in recent weeks, but they're dialing down on the remaining number of years that they plan to pay on their mortgages.