When doing an FHA streamline mortgage, one of the criteria that you must meet in order to be eligible is that you must be putting yourself in a better financial situation – often times this means lowering your interest rate. During the application process for the FHA streamline mortgage program, one of the most important steps is when your loan officer actually “locks” your rate in with the lender – meaning that is the rate that you will be getting at the closing table for your FHA streamline mortgage.
How much does it cost when you lock your rate for the FHA streamline mortgage program? It shouldn’t cost anything if you are locking for a normal period of time. A “normal” lock period is 30 days. The lock periods generally fall into these categories: 15 days, 30 days, 45 days, 60 days. If you want to get a 45 or 60 day lock, sometimes the loan officer will “charge” you to lock the rate because it costs more from the lender, but this is not usually a fee that you will pay out of pocket – it can be rolled into your FHA streamline mortgage.
So when doing an FHA streamline mortgage, it shouldn’t cost anything out of pocket when you lock. If your loan officer is telling you that it is going to cost money to lock your rate and wants you to write a check… it might be time to speak with another FHA streamline mortgage specialist who can better answer your questions – and not charge you to lock of course.