In most cases, the whole point of refinancing a mortgage loan is to secure a lower interest rate than what you’re currently paying on your home loan. In doing so, you can lower your monthly mortgage payment as well, which can save you a lot of money over the life of the new loan.

But you have to know what the interest rates are doing in order to make smart decisions about refinancing your home loan. And according to a recent article by the San Francisco Chronicle, interest rates are likely to fluctuate some more as a result of recent actions by the government.

To quote the article:

The economic stimulus bill that President Bush signed Wednesday has plunged people who are trying to buy or refinance an expensive home into jumbo limbo. The bill raises the maximum mortgage that can be purchased by guarantors Fannie Mae and Freddie Mac. Today that limit is $417,000 across the continental United States. Anything below that limit is called a conforming loan; anything above it is a jumbo. -Source

What does this mean if you’re planning to refinance your home mortgage loan? Well, for one thing it means the rate quote you get today from lenders might be different from the rate you get a month from now. That’s always the case in a dynamic economy like ours. But it’s even more true given the recent stimulus actions by the government … and the economical impact of those actions.

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