Six out of ten mortgage applications this year have been for refinancing. There are some compelling reasons to refinance beyond lower interest rates.

1 – 2.2 million homeowners have jumbo loans or ARMs that are due to adjust. Refinancing to a 30-year-fixed rate loan now can prevent years of increasing mortgage rates. Rates for jumbo loans may stabilize due to new legistation. And the uncertainty of ARMs is just not for everyone.

2- If home prices are falling in your area (like they are in most areas), it may be harder to refinance. You typically need 10-20% equity to be approved for refinancing. Subtract your loan balance from your home’s assessed value to calculate your home equity. You’ll also need a good credit rating to get a competitive mortgage rate. If you can get a good mortgage rate now, lock it in. Holding out for a better rate is usually not worth the extra stress.