Buying or Refinancing – How to Get the Best Rate!

Today a past client contacted me to look up rates for them. They have been “on the fence” for a refi a couple months now. When I originally reached out to them rates were at a 2 yr low and I knew there wasn’t much lower they could go, but could sense that they were holding off for rates to go lower.

Fast forward 2 months. Rates are now 0.75% higher. Now I’m advising them to wait… but it’s their call.

This happens a lot. When rates have been low for a while or going down borrowers often believe this will always be the case. The same with raising rates. Borrowers panic and lock in at the top, just before it drops again.

That’s why my strategy is –

Lock while the Lockin’ is Good!

Often times my clients will ask “What do you think, will rates go lower?

My response is always this “Rates are at a  ( 2 year, 9 month, ect) low now. Yes, they could go slightly lower. However, when they are at a low point it’s like betting black on the roulette table if 80% of the spots are red. If rates do go lower in the future you can always refinance but if they go up…. you can’t go in a time machine and get today’s rates.”

 

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