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I think that interest rates may get a little lower so I am going to wait to refinance.

This is a comment that I heard a half a dozen or so times last week from clients prompting me to write this blog.  Of course no one can call the bottom until months later and if you do get lucky enough to time it, then congratulations.

If you are thinking of refinancing to capitalize on these historic low rates, my recommendation is to begin the application process now and choose to “float” your rate.  What I mean is, gather all of your documents and apply for that new mortgage.  This way your lender can conduct the appraisal and underwrite your loan.  Then if and when rates do get lower you can “lock” in that low rate and close in a matter of days.  By proceeding this way you may even get another 1/8^th off of your rate as many lenders only post 30-day rate locks and if you ask for a 15-day rate lock it may be lower.  The 15-day rate is normally not quoted because we cannot take a new application and close a loan within this time frame.  Especially with the underwriters working overtime now to handle the large number of refinance transactions.

Another advantage to doing it this way is that if it looks like rates are going to move higher you already have your approval subject to locking in your rate.  Therefore you will not miss the low rates if in fact we are at the bottom?  Not sure what to do, use this mortgage check-up form to see how you can improve on your mortgage.  Email me today to get started.

About the Author: Dave Muti, JD, RMA is the author of Mortgages: What You Need to Know and a Senior Mortgage Planner with Millenium Home Mortgage, LLC located in Parsippany, New Jersey.

This great and timely advice. I’ll be telling everyone I know about this blog so they can take advantage of you are saying.

http://www.inexpensiveinvestinginflorida.com/

Thanks

Comment by Shawn December 10, 2008 @ 9:08 am

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Very smart advice. As a Realtor and Accredited Buyer’s Agent north of Boston, I hear the same comment from my clients. Everyone seems to want to “wait.” My advice is, the rates are at an all-time LOW. Do not wait too long. Talk to your lender. And, if you’re looking for homes and are also WAITING until the prices drop even further, ask yourself, “Do I want to keep renting – and paying someone else’s mortgage – or do I want to own? If you want to OWN, then get out there and start to look with your Realtor. Winter is a great time to look for houses here north of Boston. Less Buyer competition, more reasonable Sellers. Good luck, everyone!

Katherine Waters-Clark
Realtor, ABR
http://www.katherinewatersclark.com

Comment by thewriterealtor January 16, 2009 @ 8:42 pm

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