Fixed mortgage rates are tied to long term bond yields that move based on the outlook for the economy and inflation.
Bond (especially T-Bill) prices affect mortgage interest rates.

The 30 year fixed is not tied to short term treasuries. 30 year fixed rate hasn’t affected much. However, this is good news if your 5 year ARM is pegged to a treasury index.

The one year treasury is a common index for many adjustable rate loans, and it has plummeted from 5 percent in July down to now about 3.25 percent.

Also consider paying off consumer debt first on which the interest payments are no longer deductible.

Here is the simple calculation:
First subtract New Lower Payment from Old Payment then, you will have monthly savings. Second, Closing Costs divided by Monthly Savings come out Number of Months to break even.

Still have questions?
Consult with your Mortgage Adviser or you can write me at andrew@andrewkim.com

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