Locking Low Mortgage Rates For The Refi Boom? Learn From Lucille Ball.

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It’s a Refi Boom and you’re among the millions of homeowners trying to snare a low rates while they last.

Thing is, though, when rates are this low, the hard part of a refinance isn’t locking the low rate. Low rates are easy to lock. The hard part is closing on the low rate before its rate lock expires.

Life Imitates TV. People Can Only Work So Fast.

If you’re refinancing your home right now — or even thinking about it — watch this I Love Lucy video.  It’s an (imperfect) metaphor for what’s happening in mortgage underwriting offices as volume grows.

As you’re watching the video, think of:

• Lucy and Ethel as mortgage underwriters
• Chocolates as mortgage applications

It doesn’t take much for the girls in the Wrapping Department to get overwhelmed. Two people can only do so much.

Mortgage Underwriting Is Backing Up

Relating to mortgages, with each day that 30-year fixed rates stay below 4.500 percent, and that 15-year fixed rates stay below 4.000 percent, new mortgage applications find their way onto the metaphorical underwriting conveyor belt.

Underwriters are getting backed up. Quickly. And now, most banks are “suggesting” that loans come with 45-day locks at minimum. A 45-day rate lock is more expensive than a 30-day rate lock, of course.

If low rates persist, soon, 60-day locks may be mandatory and that’s even more costly.

Get Low Rates And Keep Loan Costs Low

Loans don’t get to underwriting these days without a complete supporting paperwork and an appraisal. Therefore, if you’ve just started the steps of a refinance, or plan to, make sure you’re on the ball.

Gather your W-2s, your paystubs and tax returns; return phone calls from your lender promptly; and, most important, let the appraiser in your home as soon as you possibly can.

If you can do these things, your application will be the first chocolate on the belt and not the last. It’s the best way to close on your loan quickly.  And closing quickly saves you money.

Lock Your Mortgage Rate Now

Call my office today to give an application by phone. It’s a 4-minute call and I can have a guaranteed interest rate in your hand within an hour. My number is 513-443-2020 or, if email is more your thing, and we can get started that way instead.

It’s time to make a move — the underwriting backup started last week. .

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.