When Should You Refinance & Lock In An Interest Rate

I think Ed Conarchy of Cherry Creek Mortgage said it best, “it’s better to be locked in and wishing you were floating then to be floating wishing you were locked.” Interest rates are at historic lows and lower than I ever thought they would go. If you have been thinking about refinancing your mortgage now is the time.

It is a great time right now to lock in a rate. Even if the Federal Reserve announces at their next November 3rd meeting that they are going to buy more mortgage-backed securities and rates do drop you can try to renegotiate your interest rate. You won’t get the current market interest rates but if they drop low enough you will get close to it and you took out the risk by locking in earlier and putting a ceiling on your interest rate. To find out more on how the renegotiation policies work you will have to speak with your Mortgage Professional because every bank is different and every loan is different.

I don’t know about you but I don’t make financial decisions based on what our government might do. Part of their “Quantitative Easing 2” (QE2) which is to buy more bonds is already partly built into these incredibly low interest rates so if they do announce they are doing this and it’s not as big as some had thought rates could rise. You just never know.

Anyway, don’t be greedy and miss out on these low rates. Rates can go lower but they can also go higher. If they go lower and you already refinanced you can refinance again but if they go higher and you didn’t refinance you just missed out. No one can predict the future. All we know is at the present time rates are extremely low.