Contact various lenders for refinancing and consider all offers that are being made to you. You are seeking a rate significantly lower than your current rate so that you can save some money in the long term or get it in the shape of cash. Remember to take your time when contacting various lenders for refinancing so that you can get the best possible rates.
The rate lock can be for a week to several months. It is important that you have everything in place once you get one. The loan process can be cumbersome and small issues can get long delays. So have everything in place once you are applying for the refinanced mortgage and make sure that there are no shortcomings in order to get the process done on time.
Get a Rate Lock that Makes Sense
There is no use of getting a rate lock that is for seven days as a typical loan process takes about thirty days. Think well before agreeing to a rate and consider if you can get a better option. Your credit score and the length of the history will matter a lot in this case. Also, make sure that you get the commitment in writing as a verbal rate lock will do little good for you.
Make sure that you are getting rates lower than your current rates. There is no sense in getting a minutely different rate than what you are getting right now.
Settle Loan in Time
Make sure that you settle the loan matters before the expiration of the rate lock so that you do not have any issues whatsoever later on. Getting a good refinance deal can save you a lot of money.