With cuts totaling 1.25% in 9 days, should I wait a few weeks before refinancing my 6.375% mortgage?

Or should I lock in at the best rate I can get tomorrow?

Credit score is excellent, over 740;

My 6.375% is 3.5 years old.

I'm thinking I can get a fixed 15 year note to replace my fixed 30 yr note, and afford something around 5-5.5% if available.

By the way, we've been paying down the principle, now owe only $147 k from the original $215k

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Answer:
Your rate may not be dropping as fast. The cuts are for short term rates, not long term rates. You might get 3/4 point lower, but you have to weigh that against closing costs which can take many years to come out even. If you think you'll stay in the house another 5 years, then it may make economic sense.

I'm assuming since you are paying down the principal that you are fully funding your 401K, 403B, and Roth IRA. If not, then you should be doing this first before paying any extra to a mortgage.

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Answer:
you'd want to calculate your closing costs, while the original "purchase" price was 215k, the value of your current appraisal will require a new CMA. CMA value may be 150-175k depending on your location and real estate movement.

My lender say 5 yrs and at least a point and 1/2 before making a move.

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Answer:
Don't get too excited about refinancing a fixed rate mortgage. You probably will not see any significant rate reduction in fixed rate mortgages, since the rates are far more closely tied to the bond market. Rate cuts by the Fed have far more effect on short term borrowing (credit card rates) than they do on fixed rate long term mortgages.

If and when rates go down, it won't be worth your while to refinance unless the rate drops to at least one point below where you now are.

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Answer:
if you can find something in the low 5's with no closing costs which isn't out there right now. The fed cutting rates has nothing to do with mortgage rates.

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