Many people are taking advantage of the FHA streamline refinance program because interest rates are significantly lower than they were when they took out their FHA loan.
When doing an FHA streamline refinance, when can you lock your loan?
Each lender is different, but generally speaking, you must have completed an application and provided the required documentation that you can indeed qualify for an FHA streamline refinance. The application process involves meeting with a loan officer and completing the initial disclosures and typically takes about 30 minutes to an hour. Sometimes this can be done over the phone – depending on the situation.
For an FHA streamline refinance, how long is my lock good for?
When your loan officer locks your loan for an FHA streamline refinance, typically they will lock it for 30 days. They may also lock it for 15 or 45 or even 60 days – so be sure that you ask them how long they are locking the rate for. 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, 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 also 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.
With an FHA streamline refinance, the lock process can be confusing so be sure to ask your lender about their lock process. 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.
