Rates are up today. Today’s comparison mortgage rates with no lender fees are 4.25% on a 30 year, 3.5% on a 15 year and 2.875% on a 5/1 ARM. (click here for details)


I know everyone out there wants to get a great deal on their mortgage, but I’m noticing some of you are waiting for a certain rate in order to refinance. Often times this rate is not one that makes sense for them to refinance, but the lowest possible rate ever. Today I’ll tell you why it may hurt you to wait for the right rate to refinance.

It’s also #FollowFriday! Check out these three Tweeple. They’re definitely worth a follow!



I explain why you don’t want to play the waiting game in today’s episode:


(Watch it on your mobile phone or email reader here)

Sure, everyone wants the lowest rate possible on their mortgage. In reality, you won’t know what the lowest rate is going to be until months after it is already gone.

Here’s an example of something I think you’re forgetting in your journey to get the best deal on your mortgage:

Let’s take a look at a $200,000 mortgage at interest rates of 4% and 3.875%. Principal and interest (P&I) is $955 on the 4% loan, and the 3.875% loan has a P&I of $941. That’s only a difference of $14 a month. I know 3.875% sounds cooler than 4%, but in reality there isn’t that much of a difference between the two.

I’ll take it one step further to show you what I mean:

The average person keeps their mortgage for about five years. That means they would save $840 over the next five years between 3.875% and 4%. That’s not too shabby, but is it worth it?

Your lender could possibly get you the 4% and credit you $900 off your closing cost (aka crediting overages). That would actually make the 4% loan a better deal than the 3.875% one!

Don’t get hung up on a rate; the lowest rate does not always mean the best deal.

How much extra interest are you paying right now waiting for a rate that may never come?

If you’re sitting at 5% waiting for 3.875% and not taking 4%, you’re wasting your money. This is the piece of advice I want you to take away from today’s post. If you don’t believe me, run the numbers and look at the money you are not saving when you wait for a rate that may never come. If you refinance now, you’ll start saving money immediately!

If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.

Let’s change the way people shop for a mortgage…forever!

– Mike

PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

(Click here to watch today’s “Record Low Mortgage Rates” episode on YouTube)

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