Mortgage interest rates are ticking up a bit in the California Bay Area and nationwide as well.

Does this mean you’ve missed your window to refinance into the the lowest interest rates we’ve ever seen in history…  Will you still be able to refinance or will you have to resort to a private portfolio lender?

… Well this California Mortgage Broker thinks the end of the boom is near but not quite over.

There is still time to get a make sense refinance with no cost to you.

California Mortgage Brokers Say – Rates are Still Low But Refinance Boom Nearing and End

So is the free refi boom over? Not quite, but we’re getting close. Below I explain, first by defining “free refi,” then by offering some rate market context.

In the Chronicle piece, I explained how a smart repeat refinancing strategy is to do no-cost refinances while rates are dropping, then when rates are at the bottom, doing a normal-cost refinance (which has a rate that’s .125% to .25% lower than a no-cost refinance) or even pay points to buy a rate down to capture the true lowest possible low. Here’s an excerpt:

“As rates continue to drop, refinancing repeatedly is quite common in the past 24 months.”

Many clients chose no-cost refinances, in which lenders pay all closing costs in exchange for the borrower taking a rate that is one-eighth or one-quarter point higher than the current market rate, he said.

“No-cost refinances are the best play in a declining-rate environment,” Hebron said.

That’s because they allow borrowers to refinance multiple times without digging into their own pockets.

“We’ve been advising clients not to pay points for most of 2012, on the belief that rates are remaining at existing lows or dropping,” he said.

Up until now, this no-cost refinance strategy has worked for borrowers nationwide. But the Fed minutes were the first reminder to markets and consumers that rates won’t stay this low forever

California Mortgage Brokers Bay Area Contact

Take action now and get in touch to explore your options with a refinance…

We can help you with HARP 2 and California Portfolio Lending for outside the box financing as well.