MIAMI (CBS4) – The US’s downgraded debt rating may be bad for the country, but how will it affect your mortgage?

While most homeowners don’t know if or how their mortgages will be affected by the downgrade, many are rushing to refinance.

“Our phones are ringing off the hook,” said Isabel Taja of Coral Gables based Home Financing Center.

In a panic fueled by Friday’s downgrade and Monday’s Dow disaster, homeowners began refinancing, fearful that rates would rise.

But not everyone thinks that the downgrade will affect mortgage rates.

“The reality of it is, there really isn’t going to be any kind of an impact, it’s not really going to be affected by this situation because to be quite honest, although there has been a downgrade, there really isn’t anything better out there than the US treasury,” said George Joseph, CEO of the Dade County Federal Credit Union.

While he hasn’t seen people racing to refinance, he points out that now would be an ideal time to do so, with rates at near-record lows.

A national finance analyst said that while it remains unclear if the lowered ratings will have any effect on mortgage rates, it only takes a very small increase in the rate to negate the effect of refinancing and people just don’t want to risk rates rising.