It’s time to make the refinance.

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Timing is everything. 

Buy low, sell high.  Get in when it’s a buyer’s market.  Get out when it’s a seller’s market.  The perfect golf swing.  The perfect forehand.  It’s all about timing.  Sometimes the perfect timing has to do with things like practice, discipline, experience and knowledge.  Sometimes it is a combination — a little luck and a good dose of determination.  And sometimes it’s a lot of luck and somehow finding yourself in the right place at the right time.  At times, we just happen to drive by at the perfect moment, look out the window, and find the “fresh hot doughnuts” sign flashing . . .  our cue that it’s time to pull over.  This is one of the those times. 

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Now, for the doughnut extraordinaire, the idea of a blinking sign of fresh doughnuts and the get-up-early Dunkin man (hence, “time to make the refinance”) are a mis-formed analogy . . . Krispy Kreme appreciates your loyalty (addiction) . . . thank you for ruining my post.  : )   

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As of the close of business yesterday, mortgage-backed securities reached their best position in 2 YEARS — causing mortgage rates to drop to their lowest level in 2 YEARS. 

Could this trend continue?  Well, if today’s market action is any indicator – no.  As quickly as rates dipped (as of this morning’s rate sheets), the market headed the other direction, and most investors published new rate sheets this afternoon, with a slight increase in rates. 

Bottom line — timing is everything.  Next time you drive by your mortgage statement or call your mortgage broker (check in to refinancing your higher rate mortgage or refinancing your adjustable rate mortgage) . . . the light may not be flashing.  And you’ll have to settle for cold doughnuts (a higher mortgage rate or an ARM that adjusts UP to something you won’t like very much).

Jeffrey Pinkerton is a Mortgage Consultant and President of Hillside Lending, LLC and writer for “the Mortgage Blog.”  Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing.  For more information about available programs and interest rates, please visit www.hillsidelending.com.

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