Should I Refinance Now Or Wait?

Should I Refinance Now Or Wait?


Seizing an opportunity is all about timing, therefore for the person who owns a home and is looking to refinance, home mortgageconsideration must be given today whether to seek a new loan immediately. Why the rush? Because, no one knows what mortgage rates will be six weeks or six months from now. They could continue to drop, but they can just as easily start climbing again.

Take Action Now If You Need To Refinance

If you’re like the vast majority of American homeowners who is satisfied with their current mortgage, then you need not do anything. However, if you are part of that small segment of homeowners who is in danger of losing their homes or under financial pressure as their mortgage rate resets, then taking action as soon as possible is advisable.

Aren’t Rates Set By The Fed?

Rates are affected by what the federal government does, particularly as the federal rate fluctuates, but that is only part of the equation. Your specific rate is actually determined through secondary markets such as Fannie Mae and Freddie Mac, mortgage investment arms founded by the federal government.

Fannie Mae and Freddie Mac, along with other mortgage investors, buy up loans that lenders make and either hold them as an investment portfolio or bundle them with other loans into mortgage-backed securities. These securities are sold to mutual funds, stock investors, and other parties, who trade them much the same as Treasury securities and bonds are traded.

Take Action Now

Perhaps you are waiting for mortgage rates to slip another 1/8 to 1/4 percent before you take action. Unfortunately, even if the Federal Reserve cuts their fund rates as they are expected to do once again in March, there isn’t a guarantee that mortgage rates will also decline. In fact, sometimes a slight up tick in financing rates takes place. Again, other factors weigh in besides the fed rate.

Yes, everyone wants to receive the lowest rate possible when financing a home, car, or special project. But, to delay can be costly adding hundreds of dollars annually to loan costs for consumers who gambled and lost.

For more information about refinancing, please visit to make the right choice in home refinancing. Check out the helpful smart money tips to learn about important ways for you to save money.


end of post idea for home improvement


Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.

facebook linkedin pinterest

Amazon Affiliate Disclosure: is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to The commission earnings are used to defray our cost of operation.

View our FTC Disclosure for other affiliate information.

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Matt's Musings", his personal blog. Matt covers campus, consumer, business and financial topics on various websites and blogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".