Some rates are lower today. Germany voted to support the newest European bailout plan and initial jobless claims were lower than expected. Stocks are up and bonds are down. Today’s rates with no lender fees are 4.0% on a 30 year fixed, 3.25% on a 15 year fixed, and 2.75% on a 5/1 ARM (click here to get the details).

With rates near historic lows, many people are wondering if now is the right time to refinance their mortgage. While there may not be a definitive answer to this question, here is some information to help you decide if refinancing is the right option for you.

I go back to my answer in June for today’s video:


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

So, should you refinance?

If rates drop a percentage, it doesn’t mean you should instantly refinance. Your answer to the question is complex and changes over time. You need to run a break-even analysis based on your specific situation to determine if refinancing is your best option.

There are several factors that go into a break-even point, and it will be different for every person. It depends on the size of your mortgage and how long you plan on living in your house.

A good mortgage originator can calculate this for you and give you different options based on your unique situation. The lowest possible rate is not always the best deal. The option with the lowest combined rates and costs is the one you should choose.

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 mortgageā€¦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

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