Do I refinance now or do I wait and see what the market does? That is the question being asked by borrower’s everyday, and the answer is simple. If you’re happy with the rate and payment based on today’s rates, take it and run.

Mortgage rates are as volatile as they have ever been, with rate changes happening multiple times a day. A rate that is quoted in the morning may not be there the same afternoon. My suggestion is to be prepared to lock your rate if you are happy with the results your new loan will provide. I have seen many borrowers play the waiting game; hoping rates will get even lower than the already low rates, only to get burned when rates go up. The only thing that is definite about rates is that you won’t know they’ve hit bottom until they start going back up! Set a goal that you wish to accomplish with your refinance.

Whether it be saving $150/mo or taking 25,000 worth of cash from your equity while keeping your payment the same. Think big picture. Dropping your rate .75% may not seem like huge deal, but saving $70,000 worth of interest over the life of your loan is. I think if we have learned anything during the economic crisis, its to pay attention to all aspects of your personal economic situation and to expect the unexpected. Save what you can when you can, because the mortgage industry changes daily. It only takes one guideline change to turn a potentially easy transaction into a dead loan.

Josh Peretzman, Loan Officer with Choice Finance Corporation
301-881-8900 x225
888-475-0700 x225

This entry was posted on Wednesday, February 25th, 2009 at 6:32 pm and is filed under 1) Questions for Loan Officer. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.