Should you do as the Fed chairman has done and refinance your mortgage at current low rates and lock in a long-term fixed rate? I think so.
Fed chairman Ben Bernanke’s latest financial disclosure form, released today, shows he refinanced his Washington home in 2011. He took out a 30-year mortgage with a fixed 4.25 percent rate, replacing one taken out in 2009 that carried a 5.375 percent rate.
His mortgage is valued at between $500,000 and $1 million.
Current rates will not less forever. The debt explosion will eventually result in much higher rates, even Bill Clinton knows this. It's time to lock in long-term debt, including mortgages at long-term fixed rates.