Nearly half of homeowners who refinanced their first-lien mortgages in the fourth quarter paid additional money at the closing table, cutting their principal balance, according to Freddie Mac (FMCC) data.

The 46% of homeowners who added extra cash to lower their principal mark the highest "cash-in" share since Freddie began keeping records on refinancing patterns in 1985. The cash-in share was a revised 35% in the third quarter and 33% a year earlier.

"Early in the fourth quarter mortgage rates on 30-year fixed-rate conforming loans were at very low levels, the likes of which haven't been seen in more than 50 years," said Freddie Chief Economist Frank Nothaft. "This encouraged borrowers who could do so to refinance, and many looked at their other investment options and chose to pay down a bit of their mortgage at the same time."

Nothaft noted that consumers "are generally shedding debt," and that mortgages are another aspect in which they are paring down what they owe. Consumers have been sharply focused on debt reduction since the recession, taking cash they would normally spend and instead paying debtors.

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