When is the best time to lock a refinance transaction?
If the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again. Our Refinance Savings Calculator will help you with this decision.
If the savings you will achieve with new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay, costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again. Our Refinance Interest Savings calculator will help you with this decision.
