Read Dr.Steve Sjuggerud Advice before you Refinance Your house

Dailywealth, May 2009.

Realtors always warn us "you better act now before rates go up"

We might think they're right. After all, mortgage rates are he lowest they've been since the Fed started keeping record in 1971. But interest rates could go much lower.

Interest Rates Could Go Lower and Stay There

Japanese mortgage are extremely low - less than 3 % - and have been for a very long time. The brutal reality is lower mortgage rate haven't enticed the Japanese people to borrow. They were burned so badly in the bust that started in 1991, they still haven't ventured back in.

Don't refinance today just because a realtor or mortgage salesman convinces you rates are going up. Think about it. the last person who you want to get your interest rate forecast is your real estate agent.....

It's Bernanke's goal to stimulate the economy at all cost. He's going to raise rate until he's absolutely certain he's gotten the economy going again. And it's Mr Obama's goal to get interest rate down,too to make mortgage affordable. So Lower rates could be coming.

A Strategy for you from Dr Steve Sjuggerud : If it makes financial sense for you to refinance, get an adjustable-rate loan today and let it ride as long as Bernanke is keeping rates this low.
Then, the day Bernanke hikes rates for the firs t time, switch it to 30 year fixed rate loan as quickly as you can. Bernanke's rate hike will be the signal that inflation is here. Lock in at a low 30 year mortgage rate at that time, before inflation hits.

That day could be years from now. Remember Japan's example : Interest rates can go lower than anyone can imagine and stay there longer than anyone can imagine.

The best strategy for refinancing today is getting an adjustable-rate mortgage now and then switching to a fixed rate mortgage the day Bernanke raises rate.

If it works out right, in 10 years, you could end up with a mortgage rate that's lower than the rate of inflation.

That advice from Dr Steve Sjuggerud on Dailywealth May 2009. Good Luck.....