Best time to refinance?

[Anonymous]

I currently have a 4.125% 30 year fixed rate. I've been shopping around for refinancing and I got a quote of a 2.625% 30 year fixed with a point costing 2300 (flat 3% if I don't buy a point). Lender fee is 350 (Costco member) and other closing costs total around 2400. 

I feel pretty good about this rare but does anyone have insight as to whether I should wait to see if rates drop more? 

[iced]

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@Anonymous wrote:

I currently have a 4.125% 30 year fixed rate. I've been shopping around for refinancing and I got a quote of a 2.625% 30 year fixed with a point costing 2300 (flat 3% if I don't buy a point). Lender fee is 350 (Costco member) and other closing costs total around 2400. 

I feel pretty good about this rare but does anyone have insight as to whether I should wait to see if rates drop more? 

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They've never been this low. Ever. There's not much room to go lower, either.

Whether you get a 2.625 or 2.225, you're going to have a historically low interest rate that is unlikely to be seen again for a long time once interest rates begin to tick back up. If it were me, I'd stop trying to time the market, lock in the good rate, and move on to the next challenge.

[Anonymous]

Good point. I guess I just want to try to get the best possible rate. Going through Costco means lender fees are capped at 350. I suppose that's good savings?

[iced]

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@Anonymous wrote:

Good point. I guess I just want to try to get the best possible rate. Going through Costco means lender fees are capped at 350. I suppose that's good savings?

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Maybe, don't know. Fees were the least significant cost on my closing costs, so they weren't something I paid much mind to or tried to shop down.