Wake up and Refinance! That’s the message given by Fed when they cut the key interest rate to almost zero. American public realized that and rushing to refinance their mortgages according to Yahoo Finance.

If you have good credit score (700 and above), you may even get 4.5% rate. That’s fabulous! Watch out for any charges levied by banks to refinance. You need to calculate your expenses and savings if you do refinance at current rates and make sure that refinance makes sense. In most cases, refinancing at current rates will make good sense. If you have lower outstanding balance and if your bank charges you extra fees to refinance, you may need to think twice.

Even if you don’t have great credit score, the rates are still good — around 5.4% according to bankrate.com. You can search for your local mortgage rates in Bankrate’s homepage.

Not only for refinance, it’s good time to buy your first house if you live in an area that is not much hyped up by real estate bubble. If you have good credit, good job and if you are able to find an affordable house, then go for it! It’s the time!!