Since interest rates can fluctuate, rate locks help borrowers feel confident that they have guaranteed themselves a rate for their loan regardless of what the economy is doing.
The same is true for FHA refinancing loans, especially when you want to take cash out from the new loan. When you are getting cash out from any home loan you are paying off your current loan and getting a new loan that is greater than your current loan. Typically you are using the extra money to invest in home renovations or pay off higher interest debt, like credit cards.
Mortgage rates are affected by several things which is why you probably have a different loan rate than your friends and family.
