Mortgage rates are down and long-term mortgage rates are at the lowest level compared to that of the past 4 years. Even short term rates may go down soon. So it is the best time to refinance your mortgage to get a lower interest rate.

However, it actually depends upon the borrowers’ equity that they have, credit score, present loan terms etc. They will have to think whether they can benefit from the refinance even after paying pre-payment penalty and closing costs.

Borrowers having loan amount more than $417,000, will not extract much benefit as interest rates on jumbo loans are still hovering around 6.5 percent. But no doubt rates are down to a great extent. So, if a borrower has only taken the mortgage 2 or 3 years ago with a higher interest rate, they can think of refinancing their mortgages and converting them to 30 year fixed loans with a lower rate.