1. Don't wait
Rates are more than 1 percent lower than one year ago, and close to all time lows. Rates could go lower, but history suggests they are more apt to trend higher over time. Timing the bottom will be difficult. Instead focus on the goal lowering your borrowing costs and improving monthly cash flow.
Reducing your mortgage rate from 6 percent to 5 percent on a $300,000 mortgage will save you more than $180 per month over a 30-year conventional loan. Over the life of the loan you will have reduced interest paid by more than $75,000.