Rates have been dropping! This a great thing for people with the need to refinance or lower the interest rate and save money every month. But I constantly get the question of when is a good time to lock my rate? Are rates going lower? This is the crystal ball question that nobody can give you a gaurantee on and if the do ask them for the lotter numbers at the same time.
The rate is right and you are done shopping when you obtain your goals for the refinance. What are you trying to do with the refinance? Lower rate? Lower Payment? Shorten the term of your note? Pay off Debt? You must first determine what your goal is and only you can decide this. If I offer you a lower rate on a 15 year mortgage that raises your payment but saves you 15 years on your mortgage... is this a good deal? It depends what are YOUR goals.
A mortgage professional will not just quote you a rate nor should you want this -- you want someone to ask "What are you shopping for?" This will open up a discussion on your goals to make sure that what you really want is delivered at the closing table.
When do you stop shopping for a rate? Well as you can tell from above that is simple -- when you have found a professional that will help you obtain your goals. Everyone wants the lowest rate, but this does not always meet your goals -- you can sometimes get a lower rate when you are not taking any cash out of the equity of your home -- but if your goal is to get cash out of your home the lowest rate is not right for you as it will not help you obtain your goal.
Decide what you are looking to obtain and find a professional that is going to work with you to get you there. There are always cheaper options out there, less now than previously, but remember cheap is good but good is not cheap!
If you have any questions about mortgages you can contact me directly via my website at:
http://www.new-hampshire-home-mortgage.com/
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