Should I wait to see if the Feds will lower the rates some more?

You hear on the car radio, "Greenspan lowered interest rates!" and you think to yourself, "Alright! I'm glad I waited to refinance. I bet my rate is going to be REALLY low!"

While that seems logical, that's not always how the interest rate markets work. In fact, now may be a great time to speak with a professional loan consultant about refinancing your home loan. Here are a few reasons why mortgage rates could actually rise when Greenspan and the Fed lower rates:

• When the media says Greenspan lowered "rates", what they mean is that a very specific rate, called the Federal Funds rate, has been lowered. This is a rate at which large banks lend to one another, often for very short periods of time. Mortgage rates are often much longer term rates - up to 30 years.

• Longer term rates are very sensitive to expectations about inflation. If short term rates, like the ones the Federal Reserve controls, are falling, this can encourage borrowing and spending, which can actually cause inflation to rise. Longer term rates, like mortgage rates, often rise if concerns about inflation increase. In this scenario, consumers can consider a variable rate loan that is fixed for the first 3 or 5 years to avoid rising longer term rates.

• Markets often are ahead of the Federal Reserve. Interest rates are determined every day in very active public markets. If those markets believe the economy is slowing, interest rates may fall as the markets anticipate that the Fed will soon lower short term rates. This happened in the last half of 2000 when mortgage rates began steadily dropping, even though the Fed left their short term rates unchanged. The opposite can happen as well. Mortgage rates can rise well ahead of the Fed increasing short term rates.

It's almost impossible to accurately predict the future of something as complex as the U.S. economy. However, it is important that we, as mortgage consumers, understand some of these market dynamics. Sometimes, a lack of understanding can cost us a lot of money.

Know the facts! Let a Lender We Compete help you understand the impact of today's market conditions and your current home loan. Click here to submit a no cost, no obligation application. A professional Loan Consultant will contact you at your convenience.

How long before I'll know if I qualify for a loan?

You will be contacted by up to 4 lenders within 24 hours, and most of our approved lenders can get you an approval the same day via online automated underwriting systems.

How long will it take to fund my loan?

It depends on what type of loan it is you are applying for, and how quickly you can get together and fax or send the required documentation, or schedule to have one of our couriers pick it up.  Most of our lenders can fund in as little as 5 days on a purchase transaction, but typically it takes about 15 days for a refinance or a second mortgage/equity loan.

Will I have to have an appraisal done?

Maybe not, many of our loans do not require a new appraisal.  We can use the purchase price, or assessed value.  Also many times when an appraisal is required we can use a less expensive "drive-by" appraisal, or property profile.

When can I lock in my interest rate, and for how long?

Most lenders can lock your interest rate as soon as they verify your information, some for as long as 90 days if necessary.  Some also have a float down policy that allows them to give you a lower rate if interest rates drop after you lock.  This gives you the protection if rates go up, and the flexibility to re-lock if rates go down.