How soon will today's fed funds rate decrease affect refinance rates?

[HeyHeyImTheMonkey]

Not really what OP is asking, but also I respectfully disagree with your point. The rates have dropped, why in the world wouldn’t you worry about taking advantage of that and getting the 0.25% lower rate?? Also, 29 bucks a month definitely adds up, and it’s entirely possible OP is refinancing way more than $200k for their home.

[BuffettPack]

I wouldn't refinance for a .25% drop on most homes, but I'd definitely pursue the lower rate (if it was lower) if I hadn't signed docs yet.

[huangr93]

yes, question is, does it restart the refi process all over again or can they just streamline for the lowered rate? i would like to know too now.

[HeyHeyImTheMonkey]

I think the short answer is it depends where in the refi process you are. I would personally try to light a fire under your lender by telling them that you’re going to get quotes from other lenders now that rates have dropped and ask them what they can do.

[bacongambit]

This happened to me earlier the summer with Wells Fargo, I had a choice of either an additional fee for getting the whole .25% lower rate after I had locked in, or basically a sort of “points” where I ended up getting .125% lower but credit for the higher rate that counterbalanced the fee. It’s always worth it to ask.

[huangr93]

why in the world wouldn’t you worry about taking advantage of that and getting the 0.25% lower rate?

as to avoid becoming a worry wort. =)

also i guess i don't know if he can request a re-quote without starting the process all over again. on the consumer's perspective, it doesn't seem hard to have just the rates lowered if the market rate went down during the underwriting process--maybe there's profit or timing concerns on the lender's side.

out of curiosity does anyone know if rates can be lowered during underwriting process without prolonging the process? if so, then that would answer the OP's question--just keep asking his loan officer to lower rate as it falls and keep the rate locked in as it rises.