Frequently Asked Questions

Yes. We help homeowners explore different refinancing options through our network of wholesale lending partners.

Depending on your qualifications and current loan, available programs may include:

• Rate-and-term refinance
• Cash-out refinance
• Conventional refinance
• FHA Streamline refinance
• VA Interest Rate Reduction Refinance Loan (IRRRL)
• Other eligible specialty refinance programs

We’ll start by reviewing your current mortgage, estimated home value, financial situation, and goals.

From there, we can compare available loan structures and explain how refinancing may affect your payment, repayment term, interest, mortgage insurance, and upfront expenses.

Refinancing may be worth considering when a new loan can help you accomplish a meaningful financial goal.

Common reasons include:

• Changing your mortgage interest rate
• Adjusting your repayment term
• Changing your loan program
• Removing mortgage insurance when eligible
• Accessing available home equity
• Restructuring existing mortgage debt

However, refinancing isn’t automatically beneficial just because market rates have changed.

For example, a lower monthly payment may partly result from extending the repayment period, which can affect total interest over time.

We’ll help you compare your current mortgage with a potential new loan, including the upfront expenses, payment changes, and long-term financial differences.

A rate-and-term refinance generally replaces your existing mortgage to change the interest rate, repayment term, or loan structure without providing substantial equity proceeds.

A cash-out refinance replaces your existing mortgage with a new loan that allows you to receive eligible cash proceeds from your available home equity.

For example, a homeowner might consider a rate-and-term refinance to change from a 30-year mortgage to a shorter repayment term.

Another homeowner might consider a cash-out refinance to access equity for renovations or another financial goal.

Cash-out refinances often have different pricing, loan-to-value restrictions, and qualification requirements.

We’ll help you compare the available options and how they affect your existing mortgage.

Not always.

If you have an existing second mortgage or HELOC, you may be able to keep it while refinancing your first mortgage.

However, the second-mortgage lender may need to approve a subordination agreement, allowing the new first mortgage to remain in the required first-lien position.

Whether this is possible depends on factors such as:

• The outstanding first- and second-mortgage balances
• Your property’s current value
• The proposed new loan
• The first lender’s requirements
• The second lender’s subordination policies

If subordination isn’t permitted, paying off or restructuring the second mortgage may need to be considered.

We’ll review both loans and help you understand your available options before moving forward.

No. Refinancing can result in a higher, lower, or similar monthly payment.

The result depends on the new loan amount, interest rate, repayment term, mortgage insurance, and other factors.

For example:

• Lower rate: May reduce principal-and-interest payments, depending on the new loan terms.
• Shorter term: May increase the required monthly payment while allowing faster principal repayment.
• Cash-out refinance: May increase the loan balance and affect the payment.
• Longer term: May reduce the required payment by spreading repayment over more years.

We’ll compare your existing and proposed loan figures so you understand the payment difference and what causes it.

Yes. A shorter loan term can help you repay your mortgage principal faster.

Depending on the new interest rate and loan terms, it may also reduce the total interest paid over the remaining repayment period.

However, a shorter repayment schedule can require a higher monthly payment, even when the new interest rate is lower.

For example, changing from a longer remaining mortgage term to a 15-year loan means the balance must be repaid over fewer monthly payments.

We’ll help you compare:

• Monthly payment changes
• Principal repayment
• Interest over the comparison period
• Remaining loan balances
• Upfront refinance expenses

That way, you can evaluate whether paying off your mortgage sooner fits your budget and long-term goals.

A refinance break-even point is an estimate of when the financial benefit of refinancing has recovered the relevant upfront expenses.

For a refinance that reduces the monthly payment, a common simplified calculation is:

Upfront refinance expenses ÷ Monthly savings = Estimated break-even period

However, that calculation doesn’t fully describe every refinancing scenario.

For example, if you refinance into a shorter term, your payment may increase because you’re repaying principal faster. In that situation, comparing interest and mortgage insurance over time, together with principal repayment and remaining balances, can provide a more meaningful view.

Our refinance calculator helps you explore these differences based on the loan information you enter.

We’ll also help you understand which results are most relevant to your specific refinancing goals.

Potentially. Depending on the program and available loan pricing, certain refinance expenses may be handled through:

• Financing eligible expenses: Adding certain costs to the new loan balance.
• Lender credits: Using available credits to offset eligible closing costs.
• A combination of approaches: Subject to program and lender requirements.

These arrangements can reduce the cash you need at closing.

However, they don’t necessarily eliminate the expenses.

Financing costs increase the amount borrowed, while lender credits may involve a higher interest rate than another available option.

We’ll help you compare the terms and understand the financial tradeoffs.

Possibly. Whether you can remove or change mortgage insurance depends on your existing loan, current home value, remaining balance, and the new loan program.

For example, a homeowner with an FHA mortgage may want to explore whether they qualify for a conventional refinance with different mortgage insurance requirements.

However, qualifying for a new program doesn’t automatically mean refinancing is the most economical choice.

We can compare the current mortgage insurance expense against the new loan’s rate, payment, closing costs, and any applicable insurance requirements.

You can also ask your current servicer about cancellation options available under your existing loan before deciding to refinance.

These are refinance programs designed for eligible borrowers who already have certain government-backed mortgages.

• FHA Streamline: An option for eligible existing FHA loans, with program-specific qualification, documentation, and benefit requirements.
• VA IRRRL: A VA Interest Rate Reduction Refinance Loan for eligible borrowers refinancing an existing VA loan, subject to applicable requirements.

Some streamline programs may involve simplified documentation or property-valuation procedures compared with other refinances.

However, they aren’t automatic approvals or necessarily free of closing expenses.

We’ll review your current loan and explain whether one of these programs may be available and how its proposed terms compare with your existing mortgage.

The three-day right of rescission is a federal consumer protection that allows borrowers to cancel certain mortgage transactions after signing the closing documents.

It generally applies to many refinances and home-equity loans secured by your primary residence. Purchase mortgages generally do not have this rescission right, and certain other transactions are exempt.

For a covered transaction, the three-business-day period generally begins after the last of these events has occurred:

• You sign the credit agreement.
• You receive the required material disclosures.
• You receive the required notice of your right to cancel.

For rescission purposes, business days include Saturdays but exclude Sundays and federal legal holidays.

If your loan has a rescission period, funding generally cannot occur until the period expires.

We’ll explain whether this protection applies to your transaction and how it affects your closing and funding schedule.

If you decide to cancel, you must follow the written rescission instructions and deadlines provided in your loan documents.

Once your cash-out refinance has closed, all funding requirements have been satisfied, and any applicable rescission period has expired, the settlement or closing agent coordinates the disbursement of your funds.

Depending on the transaction and settlement agent’s procedures, your proceeds may be provided through:

• Wire transfer: Funds are sent to an eligible bank account using verified instructions.
• Check: A check may be issued or delivered according to the closing agent’s available procedures.

Your closing agent will explain which methods are available and confirm the information needed.

If you’re receiving funds by wire, always verify instructions directly with the closing agent using a trusted phone number. This can help protect you from fraudulent payment instructions.

You can begin with our Mortgage Refinance Calculator.

Enter your current loan details and the proposed terms you’re considering.

The calculator can help you estimate:

• Current versus new monthly payments
• Interest and mortgage insurance differences
• Remaining loan balances
• Principal repayment
• Upfront refinance expenses
• Potential savings
• Estimated break-even point
• Cash-out proceeds when applicable

You can also select a comparison period to explore how the financial differences develop over time.

These are planning estimates based on the information entered.

For a more personalized review, our loan officers can compare eligible lender pricing and explain what refinancing could mean for your actual mortgage.

Home equity is the difference between your property’s current market value and the balances of mortgages or other loans secured by the property.

For example, a home worth more than its outstanding mortgage balance may have equity that could potentially be accessed through eligible financing.

However, having equity doesn’t mean you can borrow all of it.

The amount available depends on factors such as:

• Current property value
• Existing mortgage balances
• The lender’s maximum loan-to-value or combined loan-to-value limits
• Your credit and income
• Property type and occupancy
• Other program requirements

We’ll help estimate your available equity and review which financing options may be appropriate.

We offer access to three common forms of home-equity financing:

• Cash-Out Refinance: Replaces your current mortgage with a new loan and provides eligible cash proceeds.
• HELOC: Establishes a revolving line of credit secured by your home.
• HELOAN: Provides a lump-sum home equity loan, generally with a fixed interest rate.

The appropriate option depends on your existing first mortgage, how much money you need, how you intend to use it, and your repayment preferences.

We’ll compare the available structures and explain their impact on your mortgage debt and monthly payment obligations.

The main differences involve how the funds are provided and whether your existing first mortgage is replaced.

Cash-Out Refinance: Replaces your current first mortgage with a new one. You receive eligible cash proceeds after the applicable existing debt and expenses are addressed.

HELOC: Generally remains separate from your first mortgage and allows you to borrow from an available credit line during the draw period.

HELOAN: Generally remains separate from your first mortgage and provides a fixed lump sum that is repaid according to the loan terms.

If your existing first mortgage has a rate you want to preserve, comparing a separate HELOC or HELOAN may be worthwhile.

We’ll help you evaluate the overall costs, payments, and risks.

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home.

During the draw period, you can access available funds as needed, subject to the credit limit and account terms.

For example, if you’re planning a renovation with expenses spread across several months, you may prefer a credit line rather than receiving the entire amount upfront.

Our HELOC options generally have variable interest rates, so the rate and monthly payment can change.

During the draw period, the required payment may differ from the payment required after the repayment period begins.

We’ll explain the available credit limit, rate structure, draw period, repayment terms, and applicable fees before you decide.

A Home Equity Loan (HELOAN) is a separate mortgage secured by your home that provides funds in a lump sum.

Our HELOAN programs generally offer a fixed interest rate and a scheduled repayment term, resulting in predictable principal-and-interest payments.

For example, if you know the amount you need for a major renovation or another planned expense, a lump-sum loan may be worth considering.

Because the HELOAN is separate from your first mortgage, you may be able to keep your existing first-mortgage rate and terms.

However, you’ll have an additional loan payment and lien secured by your home.

We’ll review the available loan amount, repayment schedule, and overall costs with you.

Potentially, yes.

A HELOC or HELOAN can provide access to eligible home equity through a separate second mortgage rather than replacing your existing first mortgage.

For example, if you have an existing fixed-rate first mortgage that you want to keep, a separate home-equity loan may allow you to preserve those terms.

However, adding a second mortgage increases the debt secured by your property and creates an additional payment obligation.

We can compare the available home-equity options against a cash-out refinance to help you understand the differences in payments, interest rates, upfront expenses, and repayment terms.

Depending on the lender and program, eligible home-equity funds may be used for purposes such as:

• Home improvements or renovations
• Education expenses
• Certain investments
• Eligible business-related needs
• Debt consolidation
• Other permitted financial goals

The available uses depend on the loan agreement and program requirements.

It’s also important to consider that home-equity financing is secured by your home.

For example, using home equity to consolidate credit-card debts may change unsecured debt into debt secured by your property.

We’ll help you understand the financing structure and repayment obligations so you can evaluate whether it fits your goals.

A HELOC and HELOAN can have very different repayment structures.

HELOC:

• Generally has a variable interest rate.
• Allows draws from the available credit line during the applicable draw period.
• May have changing payment requirements.
• Can involve a different repayment structure once the draw period ends.

HELOAN:

• Generally has a fixed interest rate.
• Provides a set loan amount upfront.
• Has scheduled monthly payments according to the loan terms.
• Doesn’t operate as a revolving credit line.

Neither is automatically the right choice for every borrower.

We’ll help you compare the available rates, payments, fees, and repayment structures based on how you intend to use the funds.

Start by thinking about how much money you need, when you need it, and how you prefer to repay it.

For example:

• If you need funds for several expenses occurring over time, a HELOC’s revolving structure may be useful.
• If you need a specific amount upfront and prefer scheduled fixed-rate payments, a HELOAN may be worth considering.
• If refinancing your existing first mortgage also supports your broader financial goals, a cash-out refinance may be another option.

We’ll compare the available loan terms and help you understand the effect of each choice on your current mortgage, monthly payments, and overall borrowing costs.

Your monthly mortgage payment may include several different components.

The most common are:

• Principal: The portion applied toward repaying your loan balance.
• Interest: The cost of borrowing the outstanding mortgage balance.
• Property taxes: May be collected through an escrow account.
• Homeowners insurance: May also be collected through escrow.
• Mortgage insurance: May apply depending on the loan program and down payment.

HOA dues and some other homeownership expenses may need to be paid separately.

When comparing mortgage options, it’s important to understand whether the quoted payment includes only principal and interest or the broader estimated housing expenses.

Our Mortgage Payment Calculator can help you explore these amounts.

A mortgage escrow account is generally used by your loan servicer to collect funds for certain property-related expenses.

These commonly include property taxes and homeowners insurance.

Instead of paying those bills entirely on your own when they become due, a portion of your monthly mortgage payment is placed into the escrow account.

The servicer then uses the available funds to pay the covered bills according to the account requirements.

The amounts collected may change if property taxes or insurance premiums change.

Your servicer will generally provide escrow-account information and periodic reviews explaining how the required payment is calculated.

They may be, depending on whether your mortgage requires or permits an escrow account.

If your loan has an escrow account, your servicer generally collects amounts for taxes and insurance as part of your monthly mortgage payment.

If you don’t have an escrow account, you may be responsible for paying those bills directly when due.

This distinction is important when comparing monthly housing costs.

A quote showing only principal and interest won’t reflect your complete monthly housing budget.

We’ll explain how taxes and insurance are being treated in the loan scenario you’re considering.

Yes.

On a fixed-rate mortgage, your scheduled principal-and-interest payment generally remains the same over the loan term.

However, your total monthly payment can still change if other components change.

Common reasons include:

• Higher property taxes
• Increased homeowners insurance premiums
• Changes in required escrow deposits
• An escrow shortage

For example, if your homeowners insurance premium increases, your servicer may need to collect more each month to cover the new annual amount.

If your payment changes, review your servicer’s escrow analysis or payment notice to understand the reason.

An escrow shortage occurs when your escrow account has less money than the amount required under the servicer’s projected expenses and applicable account requirements.

This may happen when property taxes or insurance premiums increase beyond what was previously estimated.

Depending on the situation and applicable rules, your servicer may provide options such as paying the shortage amount or spreading repayment over future monthly payments.

Your regular escrow collection may also increase to account for higher expected bills.

The servicer can provide the exact shortage calculation and available payment options.

If you have questions about the figures, contact your current loan servicer for the account-specific explanation.

Possibly. Some mortgage programs permit eligible borrowers to waive escrow and pay property taxes and homeowners insurance directly.

However, other loans require an escrow account.

Eligibility may depend on factors such as:

• Loan program
• Loan-to-value ratio
• Lender requirements
• Property characteristics
• Applicable state or federal rules

An escrow waiver may also involve additional pricing or fees under certain programs.

We’ll help you understand whether an escrow waiver is available for your mortgage and any conditions that apply.

The mortgage lender is the institution that provides or funds the mortgage under the loan arrangement.

The loan servicer manages the ongoing administration of the mortgage after closing.

Servicing responsibilities may include:

• Receiving monthly payments
• Providing mortgage statements
• Managing escrow accounts
• Processing payoff requests
• Handling certain account-related questions

The company servicing your mortgage may be different from the company that originally funded the loan.

As a mortgage broker, Lock It Mortgage helps arrange financing through wholesale lending partners rather than acting as the ongoing servicer for every loan.

After closing, your mortgage payments will be handled by the designated loan servicer.

Your closing documents and servicing notices should tell you where to send payments and how to contact the company responsible for servicing your loan.

In some situations, servicing may later be transferred to another company.

If that happens, you should receive the applicable notices explaining the change and providing updated payment information.

Because mortgage-payment scams exist, always verify new payment instructions using trusted servicing documents or contact information.

If you’re unsure which company services your mortgage, begin with your loan documents and the most recent servicing statement.

Absolutely. Closing your mortgage doesn’t mean you can no longer reach out to our team.

As time passes, your financial situation and homeownership goals may change.

You might have questions about:

• Refinancing your current mortgage
• Accessing home equity
• Purchasing another home
• Financing an investment property
• Comparing new mortgage options
• Understanding how market changes may affect future financing decisions

Sometimes our review may help you determine that no new mortgage action is needed.

For account-specific matters such as payment processing, escrow adjustments, or payoff statements, your current loan servicer is generally the appropriate contact.

But when you have questions about your mortgage options or future financing plans, we’re happy to help you understand what’s available.