Recently the media began to report a drastic reduction in interest rates and I have blogged about this previously. They create a consumer frenzy that is reacting to news of lower rates and often by the time the consumer activates, they are disappointed in what they hear as they begin the mortgage process.

"I just read on the internet that rates are 4%! I'd like to refinance my mortgage"

"Oh, I didn't know that pricing changes daily and rates are worse today. I guess I'll wait!"

This is has been the consumer reaction lately. Add to this the added frustration that is caused when someone takes the time to fill in their information on line. The information if provided under the guise that someone will contact them and the can get this done in a simple and efficient manner, on the internet with little bother. "Little bother" later becomes a series of phone calls and e mails that were unwanted, disruptive and even confusing. Yet another reason to "stay the course" and do nothing! I think it is almost a godsend to many consumers that rates did go up so they don't have to deal with the hassles.

Well, now is a time to be proactive! What is your rate? How much do you owe? What about other debts? Are you planning for your retirement? Your children's college? How much longer do you plan to live in your home? How long have you had your current mortgage? All of these questions are pertinent when looking at mortgage financing! A mortgage is a major financial transaction that for years has been taken too lightly. Let's use this time when rates are low to do a financial check up! It is a great time to figure out where you money is going, and analyze your overall finances so that you can coordinate and clarify your goals in conjunction with a very important transaction.

Most people have everything "compartmentalized" into different areas without looking at the big picture that their household is actually a business. You have your mortgage, your credit cards, your savings, your 401K, other investments all out there is various forms but what you need to realize is that by "compartmentalizing" everything you think you are doing things right but you may be missing out on many opportunities.

For example, I recently worked with a lady who is set to retire in 10 years. We analyzed her overall scenario and figured out that for less money than she is spending every month today she can pay of all of her debts in less than 10 years.

Many people when they shop for a mortgage are looking to "save" money every month. However monthly savings cannot be the only measure; what if you were able to shorten the term of your loan and cut off $80,000 in interest over the life of that loan. For a lot people this can be done with a payment near what they are paying now.

Now is a very good time to get positioned to take advantage of the next "dip" in interest rates. We can review your scenario, and help you to decide what is best for you. Maybe you need to pay off some credit card debt, maybe you can save $200.00 / month compared to your current payment and you can invest that money in your retirement or children's education. In 5 years you would have saved $12,000.00! Or maybe those dollars need to be allocated to paying off another debt.

The bottom line is that a mortgage refinance combined with a financial check up and a realization that your household needs to be run like a profitable business can help you to achieve your financial goals. It is a good time to be proactive because the world financial markets are very volatile and my indicators tell me that rates are going to go lower in the near term and you should be getting your application in so that when that day comes, you are ready to "LOCK IN" your interest rate!