Ran into an old friend, David, at a party last night. After the usual pleasantries the conversation turned to mortgages and interest rates. I shared with David how we can do a Zero Cost Refinance which would allow someone with an existing 30 Year Fixed mortgage at 5.875% to refinance into a 20 Year and maintain the same payment. 

How significant is that? One of my clients will save almost $140,000 by refinancing. Where I come from we call that Money.

David commented that there is no rush after all the Fed has announced that they will keep rates down for the next two years. That sentiment is widely held – but not necessarily correct. The Fed is promising to keep overnight rates low.  However, there is no guarantee that Mortgage Rates will remain low.


How do you decide? Simple. Figure out what you would save if you refinanced today. Decide if your savings are compelling enough to act. If they are, don’t wait. There is greater risk that rates will rise than there is opportunity for lower rates. And, with a Zero Cost Refinance, you could do it again if rates do drop significantly.