Borrowers who can afford the higher payments, and who meet lenders' tougher requirements, often opt to replace their 30-year mortgages with shorter-term loans at near-record low rates.

Reporting from Washington—

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

These may sound suspiciously like teaser quotes with tricks in the fine print, but they are in fact signs of an important shift underway 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 they plan to pay on their mortgages.

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