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8 rules of refinancing when mortgage rates are falling

The lowest rates of 2016 are being reported -- what should your clients do?
  • Slow down -- if you miss this boat, you can catch the next one.
  • If you shop for a refi lender, extract a promise to close.
  • Clients need to be prepared for the new realities of TRID.

Today, mortgage rates hit new 2016 lows -- and some companies are reporting the lowest rates in three years. [graphiq id="baIEwsWrrqB" title="30-Year Fixed Rate Mortgage Rates for the Past 6 Months" width="600" height="493" url="https://w.graphiq.com/w/baIEwsWrrqB" link="http://mortgage-lenders.credio.com" link_text="30-Year Fixed Rate Mortgage Rates for the Past 6 Months | Credio" ] So if homeowners aren't thinking about selling right now, there's probably something else on their minds: refinance. Here's how to refinance a home loan the right way. The 8 rules 1. Slow down. Yes, you might miss the boat, but better to do it right. 2. Remember that closing costs on a primary residence refinance are not tax-deductible. The interest saved is deductible. So, when you’ve computed the interest saved in the first year, reduce it by your marginal tax bracket -- or just 30 percent, close enough for most borrowers -- before comparing to costs. 3. A common -- and wise -- pr...