Now is a great time to take advantage of the FHA streamline refinance program because interest rates are probably significantly lower than they were when you took out your FHA loan.
In an FHA streamline refinance, when can you lock your interest rate?
Every lender is different, but in general, you must have completed the FHA streamline refinance application and provided the required documentation that you can indeed qualify. The application process usually involves meeting with a loan officer and completing the initial disclosures and typically takes about 30 minutes to an hour. This initial meeting can be done over the phone and does not have to be done in person.
In an FHA streamline refinance, how long is my lock good for?
When you lock your loan for an FHA streamline refinance, typically you will lock it for 30 days. You may also lock it for 15 or 45 or even 60 days – so be sure that you the difference in cost to lock for each of these. Because so many people are trying to do an FHA streamline refinance right now, the lenders turn times are a little slower than normal – so I would recommend locking for *at least* 30 days.
When you lock for an FHA streamline refinance, it means that you are “locked”.
Once your rate is locked for an FHA streamline refinance, your rate is “locked” and won’t move – meaning, it won’t go up or down. It is possible to extend the lock as needed for a few days if you need a little more time to get the transaction done — but there is a cost to extend and the cost varies by period and lender.
Sometimes with an FHA streamline refinance, sometimes lock periods and the lock process can be confusing because it varies from lender to lender. With an FHA streamline refinance, many times, each lender will have a slight variation to the process, so it is in your best interest to ask the question up front and know exactly how the lock process goes.
Have questions about the FHA streamline refinance program? Speak to one of our FHA streamline experts at 888.448.2669 today!