Mortgage Rate Refinancing Advice

by Happy Homeowner

Regarding Mortgage Rate And Refinancing Advice: Note from Kate: I enjoyed this refinancing advice from a Reader but I need a little clarification with terms. Can anyone help? Read what our refinancing homeowner advises and see if you can help me.



Kate, we locked in a mortgage for a fixed term - not the life of the mortgage. The rate at the time was reasonable compared to prevailing variable rates.

As benchmark interest rates have declined, initially at a medium pace and then rapidly in relation to the global financial crisis, the fixed rate vs variable rate difference has increased.

Instead of negotiating a fixed to variable transfer in the middle of the fixed term (which would have been quite expensive), we've been happy to re-lock at a lower rate owing to the decline in underlying rates and the natural cycle of our fixed term.

All in all, waiting another 3-4 months for this to happen was cheaper than breaking. Then again, having the opportunity to relock at approximately 5% below where our initial locked rate was is certainly a good option - especially given then underlying interest rates are likely to remain so low.

Kate's Mortgage Rate And Refinancing Advice

Dear Happy Homeowner, I read your refinancing advice a couple of times not understanding your terminology until I realized you might own a home in Canada or somewhere else outside the US?

Am I right? Would you or someone else please comment and let me know what "breaking" entails and why it would be more expensive.

I hope you'll come back to my website again in the future. Of course, all of my information is free. So remember to bookmark Get-Your-Best-Mortgage-Rate.com to your favorites and visit often for up to date tips for buying a house, mortgage news and refinancing advice.

You can also invite friends to comment on this page or create a page of their own like you did.

Best Wishes,

Ask Kate how to get the best mortgage rates
Ask Kate





Finding Help You Need for Refinancing

Refinancing Advice - Your opportunity to get down to earth refinance nuts and bolts from a mortgage insider.

Having trouble refinancing your mortgage due to fallen property values? Go to Special Edition Making Home Affordable Options.

USDA Rural Home Loan Refinance with no appraisal, no credit report, and no debt-to-income calculations.

Announcing Kate's Mortgage Information Planner - To save money, get your ducks in a row first.

Are you a homeowner trying to decide if Mortgage Refi is worth the cost?

How To Compare Mortgages - Yes it is enough to make anyone want to toss up their hands.

New! Ask Kate's secret to reducing mortgage refinancing costs. Home buyers should read this too!

Real Estate Investor Loans - Three options for investors.

Surprise, it's a barn! Is a Certificate Of Occupancy necessary for your home mortgage refinance?

Refinance With Cash Out - Where is my loan approval?

Save money using My Special Refinance Formula.

Fresh Refinance Ideas - Reasons why and why not to refinance.

Discover my Secrets To Refinancing based on Robin's story

Low Mortgage Payments For Home Owners - Learn how to ask questions and qualify your lender.

Don't be distracted by refinancing lingo. 10 best kept secrets to Low Mortgage Payments.

A collection of Ask Kate Refinancing Questions and Answers II.

A collection of Ask Kate Refinancing Questions and Answers I.



P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.

Return from Mortgage Rate Refinancing Advice to Get Your Best Mortgage Rate


Click here to add a comment.

You can also ask Kate about your mortgage at Best Mortgage Advice Social Networking Hotline.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more