Many homeowners are looking into refinancing a mortgage right now due to low interest rates and favorable conditions. However, do not attempt to predict interest rates and try to time your refinancing to when you think rates will lower. Nobody knows when or if the Federal Reserve will reduce interest rates, if at all. Here is why you should not attempt to time your mortgage refinancing to when you think interest rates will be lowest.

Professionals are barely to keep up with the ever changing market and are constantly making, and subsequently losing, millions of dollars. However, are you willing to take that risk with your home? If you are putting off getting a mortgage refinance until you can obtain the absolute lowest interest rates you are putting your home and financial future at risk. That risk could end up costing you your home or a lot of money over the course of a typical 30 year mortgage.

You should not try to guess when the lowest rates will be available. If it comes down to it and you have guessed wrong and you see interest rates further decrease you can always refinance again in the future. However, if mortgage rates rise you will regret not taking action sooner, and be paying more money. Also, many homeowners rush to refinance when interest rates drop, and your application may not get approved until rates have increased even further. This would leave you with little choice but to accept the offer which has even higher interest rates which are costing your even more money.

These days a lot of mortgage lenders and banks take between 45 and 60 days to close and finalize a mortgage refinancing. In that 2 month time period, many things can change in the housing market and overall economy that can effect mortgage interest rates. Even if you get a lock in rate guarantee, many of them only last for a few business days. Do not take the chance.

If you are looking into refinancing a mortgage, your best bet is to take action sooner rather than later. Interest rates can rise, and your financial situation will probably get worse. By taking action, you are helping ensure that your financial future will remain intact and your home will not cost you as much money every month. Take advantage and do not try to predict when the lowest rates will be available for you.

-M Petrone

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