You probably have heard the radio advertisements for low rates. I was comparing the mortgage backed security (MBS) trading for the last two years and came across something interesting. The MBS is trading at around the same levels as they were in November 2008 when we saw rate not as low as this.
What does that mean?
My hunch tells me that since loan applications have fallen after the expiration of the first time home buyer tax credit, that the banks have decided that they need to infuse a new stream of applications for business through refinances. By releasing more yield to the lending world, we then are able to offer lower rates to attract you to refinance.
Should you refinance now?
Get some sound advice on whether it makes sense to refinance versus just being presented an offer. By spending 30 minutes with you I can let you know if it makes sense to pursue a refinance. All things go into the equation like how long does it take to make up your closing costs, are you going to sell in the next couple years, are you planning on paying this home off, are there other debts you could pay off to improve your financial situation with a skipped payment????
Give me a call to discuss your situation and spend 30 minutes learning if it makes sense for you to refinance or stay put.