The two same questions seem to be the theme for the last few days:  I hear rates are really low, do you think now is a good time for me to refinance?  and Do you think interest rates are going to continue to go down?

My Standard Answers:

• My crystal ball really doesn't work any better than yours, and if I did know the direction of interest rates, I would be pretty popular and you probably wouldn't be able to afford to talk to me!   Some customers look at the rate they have of say 6.25% and think WOW, they just said on the news that the rate is now 3.5%!  Well, the prime rate is 3.50% - just a little confusion between prime rate and interest rate! 
• What are you trying to accomplish, everyone's needs and goals are different,  and why do you think you want or need to refinance?  I tell most of my customers that if they can lower their rate by at-least 1 full percentage point - then we should look at refinancing their current loan.  Most of the time that will convert into a monthly savings for the customer.  On average, depending on the circumstances, I use a $100/mo. savings as a guideline for my customers.  For some, $100/mo. savings is huge, and then again I've had customers that would be saving $400/mo. and that wasn't enough savings for them personally.  Of course, there is lowering your term, extending your term and cashing out to consider, when developing a refinance scenario.
• Once you've decided to refinance - and I stress this to my customers - if your satisfied with the rates, and it meets your needs, take it and don't look back!  If the rate goes lower once you've locked-in your refinance, then that's great for someone else, and you've gotten a great deal!  At some point you've got to decide when to lock-in and then you just can't look back!
• When you are refinancing - you should never try to time the market.  Customers that try to time the market usually lose - if you hit the bottom of the market, consider yourself lucky.

So, do I think rates are going lower, maybe - they haven't been this low since the Summer of 2003.  Do I think it's a good time to refinance, maybe - it all depends on what you are trying to accomplish.