[4RE KLR]

Yes, Refi now. (see below first)

The mortgage companies are looking at anything that has "paid on time" on it. Even now you will be able to "negotiate " your rate, even from what they have posted. Why wait until the rate goes up then refi? doesn't make sense to pay them any more than you have to.

There is always a down side to refinancing any loan. You will be paying new interest on old money. What I mean is consumer loans are set up on a decreasing term payment schedule. Meaning you pay more interest and less principle at the beginning and more principle and less interest at the end. A refi will start the process all over again. New interest on old money. You may choose to keep this loan if you plan to sell the home in a couple of years. You have to figure out how long it will take you (in months) to get your money back. If it cost you $3,000.00 to refi and your payments go down $300.00 per month, it will take you 10 months to get your money back. Your numbers will vary of course. You also need to remember that while you are "saving money" due to the refi you will not be getting as much principle reduction as you would had you not refinanced the loan. Every case is different, do not let a mortgage broker sell you something you do not need. Sometimes it does not pay to refi the loan. In the example above if you were going to sell in four months it would cost you money to refinance it.

One of my customers called their mortgage companies and told them that he wanted a no fee refi or he would move his loan. They first told him to go piss up a rope. Later they called him back and asked him if he was still interested. They need some activity to keep busy I guess. He not only got a no fee refi he also got a lower rate. His payments dropped considerably.