Mortgage rates are as low as they have ever been which has many homeowners ready to pull the refi trigger again. If you have already refinanced your mortgage in the last year, it may just be too soon to do it again depending on your situation. Here are some key considerations:
Unless your new rate is at least a point or a point and a quarter below your current rate, you may not recover your costs. Closing costs, marginal tax rates, and the number of years left on your mortgage can run up the total cost of refinancing to where you have no advantage. The exception would be if you are able to successfully negotiate with your lender to waive fees.
Rates are likely to decline even further (in the short term). So say many economists and Federal Reserve watchers. The economy is still struggling and the Fed is continuing to keep a lid on interest rates. Any further purchases by the Fed of its Treasuries or mortgage-backed securities could drive rates down. And the government is trying to encourage refinancing by distressed homeowners by having rates fall further.