The interest rate on short term bonds compared to long term bonds is known as the yield curve. Usually, long term bonds demand higher interest rates than short-term bonds. For example, a 1-year bond with a 3% yield and a 2-year bond with a 3.25% yield. The slope from 3 to 3.25 is the curve. On rare occasion, short term rates rise above long term rates. Such a rise is known as an inverted yield curve.

How long the curve will be flat or inverted is anyone's guess. But, some experts are saying now might be a good time to refinance your mortgage at a fixed rate.

Refinance Now

Interest information site Bankrate.com says now is the time to get away from adjustable rate loans. ARM holders should talk to a mortgage professional about refinancing into a fixed-rate. Industry experts consulted by Bankrate say this is an especially good time for interest-only holders to refinance. And carriers of equity lines tied to the prime rate should refinance the balance to a fixed-rate home equity loan.

For more information on refinancing, visit www.bankrate.com, www.interest.com, or www.realestatejournal.com.

Eddie Daroza is a personal investor and stock market junkie. Besides contributing content to efinancedirectory, he works on the financial news show Rob Black and Your Money, broadcast daily on San Francisco's KRON 4. Eddie is also a reporter for PBS's Update News.