How long will it take to refinance your mortgage?
By Marian Miller King Bankrate.com
With interest rates at their lowest in two years, many people are rushing to refinance.
But once the process starts, be aware that it can bog down without the consumer's diligent attention.
"A lot of people trying to refinance missed the boat a few years ago, and sat on the fence, just waiting. then rates went up, and some were disappointed that they didn't lock in," said Carla Alexander, loan originator at Community Savings Bank, North Palm Beach, Fla. "There was only a two-month window of opportunity at that time."
No way to predict rates, so lock in
No one can predict what will happen with interest rates during this latest refinance boom, but Alexander said many people are opting for the rate lock.
"Almost all of our applicants have been locking in the rate," she said. "Any time you can get long-term money under 7%, then it's a good rate and that's ok."
The reason a consumer may want to lock in is because turnaround time on refinances can range anywhere from 15 business days to 30 days or more.
"Expect four weeks before you can actually close, even though some lenders are offering commitments within 10 to 12 days," Alexander said. "The reality is, it will be 30 business days for a closing."