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What do folks think about waiting until Mar 18 (for next potential Fed rate cut) or refinancing now. I know the mortgage rates aren’t directly tied to the Fed rates but some folks (including those that work at banks) think I should wait. I currently have a 6.0% interest only loan (no prepayment penalty) and the quotes I’ve received thus far range from 5.125% to 5.5% (for another 5/1 ARM interest only). Think I should wait or go for it?
No, it’s not ridiculous (my payback period on the closing costs is about a year so it doesn’t make sense NOT to – since I plan to be in the house 5 yrs)…the only reason my friend thinks I should wait is cause she thinks the rates will go down by 0.5% point by mid-late March. My question is – do folks think they will (not the Fed rate but the refi rates).

3 Thoughts on Refinancing – Fed interest rate cuts?
  1. Reply
    TPMG
    February 14, 2014 at 2:42 am

    To refi from a 6% IO ARM to a 5/1 IO ARM to save .5% to .875% is ridiculous.

    Maybe the people at the banks are telling you to wait because your refi makes absolutely no sense at all!

  2. Reply
    [email protected]
    February 14, 2014 at 3:21 am

    Wait not enough of a drop, and yoou may not see a full 1% drop by then either.

  3. Reply
    Bryce
    February 14, 2014 at 4:06 am

    It’s extremely important to understand that with a little time and the right approach getting the absolute best mortgage refinancing is not a huge problem.Companies/businesses that arrange financial products of this natureenter into some research and groundwork on your own because the Internet can equip you with an absolute pot of gold of very helpful data when it is essential that you get the best mortgage refinancing.

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