And here’s why. There is a new refinance fever hitting the consuming public. Why? Because the record low delivery rates have let to incredibly low home loan rates. Have you heard about the rumored 4.5% fixed rates that might become available from the gub’mint under a new stimulus program to get the housing market to move again?
If you’re waiting for rates to fall to that level before you refinance, you may be very sorry.
There are several problems in waiting for lower rates. For starters, when home loan rates are at or near record lows ALREADY, it’s unreasonable and possibly irrational to wait until they fall even further.
Secondly, if that program ever DOES come into existence, it will NOT be available for refinance loans. If you’re planning on buying a home, you might get lucky with a reduced rate, subsidized by taxpayers, for a purchase loan. Then again, a member of a Republican administration floated the program. Change, remember, is coming to Washington in just over 3 weeks.