Fed Rate Causes Mortgage Rate Drop, Time to Call Your Loan Agent

When I was closing my housing deal 3 months ago, my mortgage rate was locked at 6.5%. Even as I was closing, the rate was fluctuating quite a bit, so even at that time, I had asked my loan agent the idea of refinancing. She said she will keep her eyes opened for me.

Right before Thanksgiving, she sent me an email telling me it is now a good time to refinance. I would be able to get the rate to drop from 6.5% to 5.625% with a “no closing cost” option. Base on my principle of not being greedy, and as a friend said, “If it puts a smile on your face, just take it,” I decided to go ahead because it will be about 200 dollars saving monthly, even though knowing the rate is likely to change still.

Last couple days, because I wanted an update on the closing process and more importantly, the impact of the fed rate drop, I gave her a call. In the conversation day, I was offered a decrease on the rate for refinance down to 5.375% with her firm covering whatever the fee to change. It sounded almost too good to be true, so I pestered her with some more questions to affirm non-implication of this change. She reaffirmed, but as we should always, I will be careful to read the fine prints once I receive the documents.

Therefore, whether you have been waiting to buy or to refinance, now is a good time to call up your loan agent. It never hurts to ask! I am definitely happy about the rate drop I got.

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