Mortgage rates go Down-Time to Refinance?

Washington Post writes the following:

Mortgage rates around the country fell this week, with rates on 30-year mortgages dipping to the second-lowest level of the year, pushed down by further signs of economic weakness. Mortgage giant Freedie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.11 percent, down from 6.14 percent last week. The only time rates have been lower this year was the week of Jan. 19, when the 30-year mortgage dipped to 6.10 percent.

This sounds reasonable as the economy is slowing down and inflation pressures are also going down. But, when is the right time for refinancing a loan and why should one refinance? Here is the information provided by bank.com.

1.Lower interest rate.
2.Opportunity to convert all or a portion of your equity loan from an adjustable rate to a fixed-rate installment loan.
3. Obtain a shorter-term loan to build new equity more quickly.
4.Avoid a balloon payment.
5. Extract more cash from equity.

So, if you are thinking of refinancing, this might be a right time. So, think about it...