Refi Rate Update: Two Reasons Why Now Is the Time to Act SPONSORSHIP

If you've got an adjustable-rate mortgage or a mortgage above 6 percent, it's time to start looking around for a good deal on a fixed-rate mortgage. Why? Two key forces are converging in the next few months that could lead to a jump in mortgages: the Fed is no longer buying mortgage assets and private mortgage insurers are getting back into the market, but no one knows for how long.

The Fed completed its $1.25 trillion mortgage asset buying spree and no one knows if private investors are ready to get back in the game. If private investors don't pick up the slack mortgage rates could start creeping back to the 6 percent range or higher. Last week they were down a bit from 5.14 percent to 5.03 percent for a 30-year fixed and from 4.38 percent to 4.29 percent for a 15-year-fixed.

How much can you save with refinancing? Obviously that will depend on your current situation. A great tool you can use to determine how much you'll save is the "Savings from Refinancing" calculator at BankRate.com. After putting in the required numbers regarding your current mortgage and closing costs for the new mortgage, you can find out your new monthly payment, monthly savings, your interest savings, total cost for refinancing and the number of months it will take to recoup those costs.