Homeowners who are looking to refinance have a bad habit is missing record lows on interest rates. Some miss the lows out of pure bad luck. But some miss them because they misunderstand the process of refinancing a mortgage. Getting to the point where you are ready to lock an interest rate often takes weeks after estimates are sent, applications are started, disclosures are sent and signed and returned, and other documents are gathered. People who watch rates daily and decide to start an application after rates have dipped often find that they are not ready to lock their rate in until weeks later anyway. A better approach is to get the refinance process started and watch rates as the file moves through the processing and underwriting queues. That way borrowers can lock for 30 days or sometimes 15 days and get even better rates. There is nothing wrong with getting your loan ready to go and then locking and closing late in the process — especially if rates are trending lower as they have been the last few days after spiking last Tuesday. The value to that approach in times like these, where rates appear to be inching lower again, is borrowers will be ready to close as soon as rates dip again (assuming they do dip again).
If you have been considering a refinance contact us in the sidebar today to get more information and/or an estimate. Rates are unpredictable but there is value in being ready to jump at the right time.