Is it Time to Refinance Yet? - March 10, 2008
The US and world economy continues to slow down, it leads to interest rates decrease. Mortgage interest rates decline as well. This situation can make refinancing even more attractive than it has been before.
Interest rates have dropped almost 1% off their most recent highs and they tend to drop further. People who bought a house or refinanced several years ago should consider whether the new loan rates make it attractive to refinance again. Doing so now may significantly decrease monthly payments and you can easily spend extra money on anything else. Just check your mortgage quote and maybe you will find it worthwhile to refinance.
One may think, that it is still too early to refinance now as interest rates tend to decrease. Be very careful with that; it is very hard to predict the direction of interest rates and home values. If the economy continues to decline, expect interest rates to stay low or get even lower. This may be a good time to refinance, but the market can recover very fast and lending rates will increase. You may lose the right moment for refinancing in order to save good amount of money for your household. Be careful with waiting for too long.
Before getting into action, learn as much information as possible. There are some good financial resources online, I advice you to study the material and estimate your financial state. If you feel unable to do so yourself consult professionals.
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