Buy a Home or Refinance Your Mortgage...Now (or Soon)!

publication date: Mar 19, 2009

Could fixed-rate mortgages go lower?

Of course they could. I never profess to have a crystal ball.

But, if you can save money now by refinancing, why not lock in these low rates (see graph below)? Of course, you've got to weigh the out-of-pocket costs and consider how long it will take to recoup those costs with the savings from a lower cost mortgage.

If rates continue to fall, you could always refinance again. But once rates head higher, you'll have missed the opportunity to lock in these historically low rates.

For those thinking of buying a home, the combination of low interest rates and lower housing prices have made housing the most affordable it's been in decades as I recently wrote in an article.

Graph: 30-Year Conventional Mortgage Rate


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Eric Tyson is the only best-selling personal finance author who has an extensive background as an hourly-based financial advisor and who does not accept speaking fees, endorsement deals or fees of any type from companies in the financial services industry or product or service providers recommended in his articles, books and his publications.