What You Need To Do About Refinancing Today

It might take a while

If youve refinanced before, you may have been able to wrap up in 21 or 28 days. And you still might. Or it could take you a bit longer. According to The Mortgage Reports, refis were taking between 35 and 45 days last year, and the glut of new loans is putting a strain on the system, thereby causing delays.nbsp;

Rates may fluctuate

Rates as of this moment we are at historic lows. Could they go lower? Its possible. Could they rise? Thats also within the realm of possibility. Talk to your lender about when and if you should lock your rate.

A lock-in or rate lock on a mortgage loan means that your interest rate wont change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application, said the Consumer Finance Protection Bureau CFPB. Mortgage interest rates can change daily, sometimes hourly. If your interest rate is locked, your rate wont change between when you get the rate lock and closing, as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45, or 60 days, and sometimes longer. If your rate is not locked, it can change at any time.

You might not get the lowest ratenbsp;

Those sub-3 rates youre hearing about may not be available to you. Theyre reserved for those with the best credit. If you dont have at least a 700 score, dont expect to get that kind of rate without a buydown.

You might need an appraisal

Then again, you might not. It all depends on the type of loan youre getting. If youre refinancing from one FHA loan to another, youll probably only need an exterior appraisal. In this case, an appraiser will come and measure and take pictures of the outside of your home only.nbsp;

But, if youre refinancing out of an FHA loan into a conventional loan, for example, you can expect to have an appraiser td a thorough examination of the interior of your home, too. If youre doing a streamline refi, you likely wont need an appraisal at all.

You might get money back

Doing a cash-out refi isnt the only way to get some money out of your home. Talk to your lender about when to close so you get some money back. With our recent refinance, we closed at the end of the month and were able to skip two payments. We also had our existing escrow account credited back to us. That was about an 8000 swing.