For the past two months, it has been all over the news. Record low interest rates. But, not everyone qualifies. And that means that waiting is the best option for some. For now, just be aware that if an advertiser is promoting a certain rate, that there is a very good chance that a 'bait and switch' tactic is being employed. And often, the 'switch' comes AFTER you have provided a non-refundable deposit. Rates have been increasing over the past 10 days or so, and while they are still good, they may not justify a refinance. Remember that you are spending money to refinance, whether or not the lender is 'paying your closing costs'. [You are paying in the form of a higher rate.]
What do you gain by waiting? If you missed out on the rush to refinance, there is a very good chance that the employment cutbacks in the mortgage industry are hampering the ability to process the huge volume in a timely manner. A rise in rates slows down the volume of new applications. Once that volume has been absorbed, there is a good likelihood that rates will recede once again. You just need to have your mind made up and be ready to move quickly. But, if you see any changes in your housing plans in the next 3 years, you may be better off NOT refinancing as the payment savings will not cover the closing costs.
Loan to value, credit scores, whether or not cash is taken out are 3 factors that will go into pricing your loan. It is no longer one size fits all with regard to mortgage rates. So, if your loan to value is over 60%, your credit scores are below 720 and you plan to take cash out, expect 3 pricing adjustments. [The credit score threshold will vary by lender]. Sometimes, you CAN get what you want, but be prepared to ask the right questions and to work with an experienced loan officer to get the best results.