"For example, if you decide to seize the moment when the 30-year FRM is at an all-time low, the rate will stay until the last cent has been paid off. If you decide to refinance, however, you may end up with an entirely new rate, higher or lower. This also benefits mortgage lenders since, as mentioned earlier, FRM plan holders are less likely to default. Prepayment While FRM usually has a high interest rate, this type of home loan in Memphis and other areas makes up for it in prepayment. You can pay a bit more per month if you want to, and by making a slightly larger payment every month, you get to finish paying the mortgage early. Some say you can even finish paying a 30-year FRM in as early as seven years."
http://memphis.churchillmortgage.com/blog/2013/12/05/economist-why-30-year-frm-is-popular-with-memphis-mortgage-lenders/
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