Refinanced mortgages have a few distinctive rules when it comes to closing. For one, there is a mandatory rescission clause for primary residence mortgages that permits you to annul your loan. You can decide to close at anytime, which is advantageous if you think rates will go down in the near future.

If the property is your primary residence you have three days after closing to cancel your loan with a rescission clause. Consider it a “re-evaluation” period. If you have cold feet, you can annul the loan and recoup almost all fees.

If you annul your mortgage, you will barely have a short term hit on your credit score from the lender’s background check. However, it will have an effect if you make a decision to apply for a new loan in the near future.

You have the option to keep you refinanced mortgage open indefinitely. You don’t have to close your refinanced mortgage within 30 days. On the other hand, you have to consider your alternatives cautiously. As you are waiting for rates to drop, you may observe them increase while paying your existing high mortgage rate.

Mortgage rates vary on an approximately hourly rate, but they do follow a trend. You can learn about general mortgage rates in finance section of your newspaper or hear about it on radio and television. Whether the Federal Reserve Board increases or lower rates ultimately impacts mortgage rates, but other factors also influence mortgage rates, making it complicated to foretell precise changes.

You also have to bear in mind that each month you put off locking in rates, you are losing a possibility to save money. While a percent can save you a substantial sum of money, a quarter percent isn’t worth it. Waiting for lower rates is a risk, but it is a risk that you have a right to.

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