The Big 2011 Question: Should You Refinance Your Mortgage?

June 22, 2011/Scott Sheldon

The big 2011 money question: Should You Refinance Your Mortgage.. in a nutshell, it depends.

The bottom line mortgage rates are extremely low right now. How low? Try 4.5% and lower for 30 year money and 15 year is under 4.0% and that is without points! Ultimately, no one can control the actual rate you’ll get on that loan as rates move all day. Refinancing makes sense even if you are saving only .5% in rate too. Don’t think so? Receive Live Rate Quote by filling out the loan search parameters or giving me a call at 707 217 4000. We can run the numbers together.

Refinance into a lower rate mortgage, never refinance again!

If you can save money by refinancing, reduce your interest expense over time, especially considering the no-cost refinancing opportunities available, go for it! Whether going with a Conventional Loan or with a loan from the FHA, the time has arrived. You may never need to refinance again…ever. Rates are near the historical lows of 2010 and they will not last. Sonoma County Best Rates give you the best payment.Act Now!

Receive a live mortgage rate with local lender Scott Sheldon today.

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RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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2 Comments

  1. Underwater? Yep You Can Still Refinance.. - Sonoma County Mortgage Lender- Best Mortgage Rates on June 22, 2011 at 6:21 pm

    […] equity and are otherwise underwater on their mortgages. For these people, up until now, refinancing has been out of the question. Lots of folks have only one loan on their property with an average […]



  2. How to Select The Right Mortgage Company - Sonoma County Mortgage Lender- Best Mortgage Rates on July 29, 2011 at 5:56 pm

    […] #AT# sonomacountymortgages.com – replace #AT# with @ ]. Maybe you’re thinking about doing a refinance and your curious what the market is? I’d be happy to provide you a no obligation rate quote. […]



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