Refinancing May Be a Good Idea

Dear Monica: How should I react to the recent Federal Reserve comments that they will raise rates more times in the next months?   I have a house that I would like to refinance but I don’t know if this is a good time to do so.  Judith C.

Dear Judith: This could be a very good opportunity to refinance before rates increase more.  Depending on your future plans,  you may want to refi into a lower fixed rate for 5,7, or ten years which may reduce your monthly payments.  Then you could either pay down principle during this period and when it reverts to a changing rate, refi again depending on the lending climate at that time.

It is hard to predict where the volatility in the present market is going but at least you can manage your payments for the next years with a good loan now.