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Patricia Said:

Mortgage Refinancing and Fed Rate Drop?

We Answered:

I wouldn't do it just yet because it takes awhile for the secondary market to adjust pricing and it doesn't necessarily happen when the Fed makes a move. In recent years the rates go the way the market is moving. If you've noticed recently, the rates have dropped considerably, right along with the market.

The credit writedown info hasn't all been released yet, and there is more bad news on the way. In addition to that the greatest amount of mortgages slated to adjust is set for Feb. and March of this year.

If I'm doing this I'm looking at Ground Hog day, to see where it's at. My opinion 2008 will see rates down the entire year. The Fed will pull out all stops to keep the wheels from coming off the wagon. There should be some good deals as a result. Add to that the notion that the "talking heads" have finally caught on that the R word is either here or knocking on the door, and I would wait.

Carl Said:

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

We Answered:

No one can project the rates very good. If you want to risk losing even more equity in your home for a lower rate, by all means wait. But, if I were you, I would certainly refinance today!