Low interest rates have prompted a refinancing boom and a buying and selling spree in residential real estate.  The low in mortgage loans was reached in mid June 2003, when 30 year mortgage rates dipped, briefly, below 5%.  Since that time rates have climbed back up to the 6% range, which by recent historic standards is still very attractive.  The advisability of refinacing is based on one's current rate.  A percentage point lower is the rough rule of thumb to go forward with refinancing.

There is not much difference in the legal and finacing paper work to refinance a loan and to obtain a new one.  The chief difference in this process is that there is not a seller and the loan approval is easier.  Otherwise, one undertakes the same legal obligations and secures the mortgage loan with a mortgage promissory note and deed of trust (aka mortgage) as in a purchase.

JONES & WALKER, P.C. has been involved with hundreds of clients in refinacing their home loan.  If you have not refinanced and are considering doing so, we advise you to contact us promptly before the loan rates become more unfavorable.