Should I Wait to
Refinance?
by Craig Romero
Mortgage rates have gone up and
down, and some speculate that they may drop even lower, but homeowner’s have to
consider whether or not playing the waiting game is really wise when it comes to
refinancing your mortgage.
While analysts speculate that
mortgage rates will remain low, no one is guaranteeing, or even predicting that
they will drop lower. While it is not impossible for rates to drop even lower
than they already are, it is more likely that they will go up than it is that
they will go down. Homeowner’s who wait to refinance with the hopes that rates
will drop below the currently low rates may be disappointed and find themselves
refinancing at a higher rate than they could have if they would have refinanced
now.
At this point in time, when it
comes to mortgage refinancing, the early bird really does get the worm. Since it
is unlikely that significant rate cuts are in the forecast, homeowners can start
saving money sooner by refinancing now. For each month that a homeowner does not
refinance, that is another month that they are throwing more money away in
interest and less at the principal of their mortgage. Since significant savings
are to be had as a result of refinancing a high-interest rate mortgage to a
lower interest rate, it only makes sense to take advantage of these savings
sooner rather than later. And if saving money sooner is not an incentive,
homeowners should think of the money they could be risking if rates suddenly
increase and they lose the window of opportunity to refinance at a lower rate.
It is important to lock in the low rates now to avoid a lost opportunity if
rates do indeed increase.
While no one can tell you when it
is the right time for you to refinance your home, if the only thing that has you
waiting is the thought that mortgage rates might drop even lower, you may want
to rethink that decision and take advantage of the already low rates that are
available to you right now.
Written by Craig Romero
Discover how to
quickly build a minimum of $40,000 worth of home equity and pay your mortgage
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Craig Romero is an author and mortgage analyst dedicated
to
helping homeowners maximize the investment in their homes.