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With news outlets constantly reporting about mortgage rates being at record lows, many Americans find themselves questioning whether it’s the right time to refinance.  The general rule of thumb has been to refinance if you can lower your interest rate by 2% or more.  Today, even a slight decrease in a mortgage rate can equal big savings over the life of a loan.  It’s a great time to lock-in one of the lowest mortgage rates in history.  In fact, it’s quite possibly the best time ever, according to our resident financial guru.

We talked to Chief Economist Bob Walters about refinancing and why he considers now to be the greatest time in history to get a lower mortgage rate.  Bob’s expertise is often tapped by publications like USA Today, Bloomberg and the Wall Street Journal.  He offered us his three main reasons:

1. Interest rates aren’t likely to go down much further than they are today – Today’s mortgage rates are close to the lowest they’ve ever been.  If they go down, they will only go down slightly.  If they go up, it could be a swift incline with no return.
2. Credit restrictions are likely to get tighter in this economic environment – It makes the most sense to refinance now as experts believe credit restrictions could make refinancing more difficult in the future.
3. Home prices will most likely continue to trend downward – Those who wait run the risk of losing equity in their home and therefore not being able to refinance at all.

These three factors make refinancing now the clear choice. From an economic perspective, it doesn’t make sense to wait and see if rates drop lower. Don’t run the risk of not being able to refinance.  Take advantage of one of the best times in history to save money on your mortgage.

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