During this past week, mortgage applications dropped 7.1 percent, despite a decrease in mortgage rates. For some, the drop would prove to be the lowest rate, so far, in 2013, and yet few people are taking advantage of it. Five-year rates are currently at a record low and 15-year rates have dropped from 2.79 to 2.72. Could it be that low mortgage rates homeowners are unaware? We think not. Now is the time to refinance, but perhaps the following mortgage myths are holding some homeowners back.

Waiting Period – Many homeowners are under the impression that they must observe a waiting period before refinancing their homes. This couldn’t be further from the truth. There are currently no laws or regulations stating that a homeowner must wait to refinance his or her home. You have the freedom to refinance whenever you want, even if it is mere months after you take out a mortgage.

Principal Payments – Many homeowners hesitate to refinance because they don’t want to lose the balance they have paid off. Rest assured that any percentage you have paid will be reduced from your new balance. Since your previous payments directly affect your new balance, you can be certain that your savings will remain intact.

Prepayment Vs Refinancing – Some think that it is futile to refinance when you are currently making higher or extra payments. Contrary to this belief, refinancing could in fact lower your monthly payment, which would enable you to pay off your mortgage even faster. As long as you continue to make the original extra payments, you will in fact shorten your repayment period.

It is perplexing to see mortgage rates dropping with few homeowners taking advantage of the lower rates. Perhaps the previous refinancing myths can better explain the hesitation. If you’re thinking about refinancing, now is the time to do so.