We have refinanced (or at least started the process) and locked in at 4.96 after paying a point (it was 5.6 without the point, lenders wanting up-front money and assurance in today’s market). We are rolling in the point and closing costs into the new loan and we’ll still be saving $140/month over our current loan (and if we hadn’t rolled in the costs, it would only have saved us $21/month more).
Obviously, this may be biased, but here’s an article that helped me make up my mind:
Say Hello to the Best Rates in History
by Victor Burek
Posted Dec 17 2008, 08:11 AM
In today’s economy things are changing very quickly and you can chase rates for a while but you don’t want to miss the boat. I would advise all readers, determine a rate that makes sense as far as what it costs and how much you are saving. Once rates hit that level, lock, close and move on with your life. Rates can and will go lower, but there is much more room above for rates to go higher then below for rates to go lower. And keep in mind, LIFE happens, things can change, you could simple forget to make 1 payment to a credit card and your credit could fall and now you don’t qualify. One month ago, rates where 1% higher then they are now, 2 months ago rates where 1.25% higher then now. So, as you can see, things can move quickly.