This morning's newspaper carried an article that said Fed Chairman Bernanke is pressing lenders to lower rates. As I drove back from the office today, I heard at least three offers to refinance home loans on my car radio.
If you missed your chance five years ago, this might be the time. The credit crunch had produced the lowest rates in years. A refi now should appeal to three groups: those who have scary interest-only or negative-amortization mortgages, those whose credit scores have improved since they took out their original loans, and those who have adjustable loans that recently (or will soon)reset.
If you have a loan of over $417,000, it would make sense to wait until the higher conforming rates kick in...sometime this spring. But if you can match the new, tighter guidelines... a credit score of 680 or better, at least 5 to 10% equity in the house, refinancing may make sense, especially if you can save a full percent on the interest rate and intend to stay in the house for five years or more.
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