Have you refinanced yet?

If you haven't already refinanced and you got your mortgage a couple of years ago, you probably should consider calling your lender.

According to this story in the Seattle Times, some bankers are reporting refinancing activity up 50%.  Bottom line: if you're not already paying in the 5's or if your loan is really big, you may want to give your lender a call and see what they can do for you.  It may be the easiest way to save a couple hundred bucks a month or increase your equity for the same monthly payment.

p.s. If I were a betting person, I might wait till next week since I suspect our man Ben Bernanke (below) will cut rates again this week.

Comments

[Rhonda Porter CMPS]

I'm not sure if I'd wait for Ben (although it's kind of late not too). It's anticipated Ben will be dropping the Funds Rate tomorrow which is NOT directly releated to mortgage interest rates (unless you have a HELOC). Mortgage rates are based on mortgage backed securities (bonds) so we'll have to see how the traders react tomorrow from Ben's actions. We also have the PCE being released on Thursday and the Job's Report on Friday--all of the items greatly impact mortgage interest rates. Wait to refi? Sure...if you like to gamble to market. :) I suggest contacting your Mortgage Professional and having your loan ap ready and be in the best position to lock.

[DL]

I thought fixed rate mortgages tend to track the LIBOR (London Interbank offering rate) rate. Are there any signs that the European Central Bank will ease rates over the next few months?

[Jacob]

The Fed Funds Rate doesn't directly control residential mortgage rates. However, there is no doubt lowering FFR will be correlated eventually with lowered mortgage rates (all else equal). At least, that's my recollection from econ class 20 yrs ago ;-)

[jcricket]

I lucked out. Right after the Fed slashed rates 3/4 of a point, I contacted my mortgage broker (Connie Lindsay of Cobalt Mortgage). I happened in on a 5.25% no-point loan at the low point. Woot! Down from 6.75%.

The rates have gone up since then (not for HELOCs, though), so it pays to keep on top of these things. Of course if there's more economic bad news today and tomorrow (jobs reports, etc.) I suppose rates will settle back down into the mid 5s.