Are you a homeowner with a watchful eye for interest rates in hopes of locking in a good interest rate deal for a refinance? Most of us who own homes keep some antennae in the air for what interest rates are doing, especially in today's economic environment.
As we close out 2008 and head into 2009, mortgage interest rates seem to be heading to all time lows. It is all over the news that rates for home purchasers will soon be at 4.5% and rumor has it that rates for folks looking to refinance will be heading much lower too. With lower rates setting the stage for super savings on mortgage payments, how does one know when is the right time to lock in a rate and get busy with a refinance.
Interest Rates Are Going Down - Do I Refinance Or Wait?
Low interest rates mean lower mortgage payments, but waiting too long can cost you the opportunity to refinance. Here's why.
One of the major reasons for interest rates going down is because of the work that the U.S. federal government is doing to lower interest rates to stimulate the economy and the housing markets. Why are they trying to do this? It is because of the massive amounts of homes that are in foreclosure, that are going to be in foreclosure in the next few years, and that are currently up for sale. As the number of homes for sale continues to increase the overall value of property values goes down.
This is your dilemna. It is a catch 22, "Damned if you do and Damned if you don't." If you wait for the lowest rate, you may shoot your refinance opportunity in the foot as your property value may continue to fall to a level that is below your current mortgage balance. Or your value may drop enough to require that you have to pay PMI where you currently do not.
That's the do part, the don't part is if you lock now and get your refinance done and then rates drop again, you may always be asking the question "what if I had waited?"
Official GetPreQualified.com Advice:
If you are thinking about refinancing your home, contact a mortgage loan officer as soon as possible to see what your options are. If you have questions about your situation you need to get them answered. The mortgage loan rules have dramatically changed over the past year since the beginning of 2008 heading into 2009. The best place to start with your refinance is to find out what your home is worth. You do this with an appraisal.
To speak with a mortgage professional in your area about your options, please fill out the form below:
