Homeowners who refinanced late in 2014 saved $2,500 yearly in interest on a $200,000 loan, said FreddieMac in a report issued Wednesday.

With interest rates lower, the federal agency, which guarantees home loans, expects refinancings will increase in the first quarter of this year.

For the first time since 2009, the rising housing market allowed over half of consumers refinancing to have more in home equity than the money they contributed as down payments.

“Over the course of last year, borrowers continued to take advantage of near record low mortgage rates to lower their monthly payments, shorten their loan terms and overwhelmingly choosing the safety of long-term fixed-rate mortgages,” the study said

About a third of borrowers who refinanced in the fourth quarter shortened the length of their mortgage.

Since the recession, more consumers are making bigger mortgage payments to increase their home equity before refinancing.

Freddie noted last year more than 95 percent of refinancing homeowners chose a fixed-rate loan.