Mortgage refinancing- do it now, or wait? What direction are rates currently projecting on going?

1. The fed is not going to lower the rate for now. This is true. Therferore, if you have to refi withing the year or two, I would do it now.
2. Dont buy the Rate. Buy the monthly payment. Brokers and lenders want to sell you the rate when you should really be focused on the monthly payment. Whenever you refinance, you will pay closing costs. You have to basically consider the amount you are paying and the amount you will save monthly and then calculate how long it will take you to recuperate what it will cost you to get those savings. Lets say that I owe 400k on my current mortgage @ a rate of 8%. Along comes this friendly broker who tells me that he can lower my rate and save me money by refinancing my mortgae at an int rate of 6.5%. This decrease will lower my monthly payment by $ 203.14. My question to him would be what are my closing costs…if he says no closing costs or something like very little….. run the other way…there are always closing costs when refinancing a home. If I notice in the good faith or truth in lending that closing costs are lets say 8K which is about what you would pay for a refi mortgage of this type. You would have to wait 4yrs to recoup your money invested in the closing costs. The next question is how long you are going to stay in the home. If more than 4yrs…where do I sign…if less than 4yrs…NO THANKS. Hope this helps.