Want Low Mortgage Rates? Get In Before The Government’s “Mass Refinance” Program Begins.

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In a Refi Boom, locking mortgage rates is easy. The hard part is closing on them fast enough.

In Mortgage, Life Imitates TV

Across the United States, hundreds of thousands of homeowners have a home refinance in-process. FHA mortgage rates are sub-4 percent; and conforming and USDA mortgage rates are similarly low.

Maybe you're in-process, too.

Rates are low and if you're refinancing your home right now -- or even just thinking about a refinancing your home -- take 3 minutes to watch this I Love Lucy video.  It's an (imperfect) metaphor for the underwriting side of today's mortgage business.

Underwriters, appraisers and title companies can only work so fast.

As you watch the video, think of :

• Lucy and Ethel as "the back end" -- Underwriters, Appraisers and Title Searchers
• The Chocolates as the mortgage applications of you and your neighbors

When the chocolates are moving down the conveyor belt slowly, Lucy and Ethyl have it all under control. However, once the belt speeds up, though, the girls find themselves overwhelmed in a hurry.

People can only do so much, so fast. And that includes your lenders' people.

Click here to get a rate quote.

Record-Low Mortgage Rates Drive Up Applications

As it relates to mortgages, underwriters are beginning to back up.

30-year fixed rates have been below 4 percent with "points". 15-year fixed rates have been near 3 percent. The 5-year ARM -- jumbo and conforming -- has been below 3 percent. Mortgage rates are unfathomably low.

And people are noticing.

With each day that FHA, USDA and conforming rates stay near record low, new mortgage applications find their way onto the metaphorical underwriting conveyor belt, and the problem will only be exacerbated once the government's Mass Refinance program passes.

Click here to get a rate quote.

Banks, Appraisers Not Ready For Low Mortgage Rates

Mortgage underwriting is backing up.

Lenders are flooded with new applications and the lending pipeline is backing up. Remember, the mortgage industry has been paring staff since 2007. It's not necessarily prepared for this. And neither are the appraisal or title companies.

There's a growing logjam and mortgage applicants are paying the cost.

Because of delays, some banks now "suggest" that all mortgage rate locks be made with a 45-day lock at minimum. This is more expensive than a 30-day rate lock, of course.

If the FHFA's revamped HARP Program passes this month, that period may increase to 60 days. This is because the program is being called the "mass refinance program" is some circles; nearly all underwater homeowners will be eligible and many will want to refinance.

If you qualify for a home loan, lock your mortgage rate before the revamped HARP rolls out.

Lock Your Mortgage Rate Now

Want to lower your loan costs? Get your loan locked today. You'll 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.

The HARP program will be amended by early-November, says the government. When that happens, the floodgates will open. You want your mortgage application in-process before that happens.

Click here to get a rate quote.