There has been a disagreement among Wall Street dealers on the prepayment behavior of refinance loans and purchase mortgages. While some researchers have argued that recently refinanced loans will prepay faster than new purchase loans, others take the opposite view.

RBS Dain Rauscher Senior Analyst Kevin Jackson, in a report, argued that refinance loans have prepaid faster compared to purchase loans when there was really no incentive to refinance, citing data on agency conforming loans. However, seasoned premium purchase loans usually prepay faster compared to seasoned premium refinance loans. In terms of vintage, 2003 originated 30-year loans have shown a significantly steeper seasoning ramp against 2002 and 2000 originations.

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