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. .

Mortgage Market Update For July 27 2010

Mortgage rates have been stupid-low lately, sparking the start of a Refi Boom.

This 96-second video covers a lot of ground:

• The hidden stats in June's Existing Home Sales report
• How move-up buyers are making the Fall Market
• Mortgage rates exhibiting the tell-tale signs of rising
• Timing rate locks for 30 days, 45 days or 60 days for lower fees
• The importance of returning your loan documents quickly

Refinance business is booming right now and purchase activity is close behind. If you're contemplating a mortgage and want to work with me, just . We can start working on your rate quote right away.

It pays to know a little bit about The Mortgage Rate Game.

Keep Your Loan Fees Lower

Whether you're buying a home in Cincinnati or refinancing one, there's multiple ways you can make a play for lower mortgage rates or fewer loan fees.

1. Have a higher credit score
2. Make a larger downpayment
3. Do your Good Faith Estimate homework

But, sometimes, the easiest way to save money on your mortgage is to pick a better closing date.

Rate Locks Are Bets On Markets

It's all about Rate Lock Commitments.

A Rate Lock Commitment is a bank's promise to honor a specific mortgage rate for a specific period of time.  It's a contract, of sorts, in which the lender says: "Provided you close on your loan in the next however-many days, we'll make sure you get your locked rate."

Now, from the bank's perspective, rate locks are scary.  This is because the bank is promising you a rate today that won't be signed for until some point in the future and banks know that the farther into the future they try to predict, the more likely they are to be wrong.

It's a dangerous game and it's why longer rate lock commitments often come with higher interest rates, higher fees, or both. Banks are hedging against "time risk" at your expense.

How Rate Locks Are Priced Against Time

So the game works like this: (1) Rate locks typically come in 15-day increments, (2) The 30-day rate lock serves as the basis for all other pricing, and (3) All loans headed for Fannie Mae or Freddie Mac follows this pattern:

• 15-day rate lock : 1/8 percent lower than the 30-day rate lock
• 30-day rate lock : The basis for all other pricing
• 45-day rate lock : 1/8 percent higher than the 30-day rate lock
• 60-day rate lock : 1/4 percent higher than the 30-day rate lock

Putting this to a Real World Example, if you went into contract this past weekend and set your closing date Friday, May 21, that would be 46 days from now and would mandate a 60-day rate lock.

A better closing date would be Thursday, May 20, 2010. That 1-day difference will lower your mortgage rate by an eighth.

Rate Lock Timing Matters For Refinances, Too

And the math isn't just for purchase.  It applies to refinances, too.

A refinance that can close in 30 days is going to be better priced, in general, than one that takes 45 days to close.  It's why being on the ball with your loan officer is such a big deal -- quicker to process means quicker to close.

You may not be in a hurry to close, but your rate lock says otherwise.

Managing a rate lock commitment is an easy way to keep mortgage rates and loan fees down.  So, before you set your closing date, or start working on your refinance, consider time's impact your mortgage bottom line.  The shorter your rate lock commitment, the more money you'll likely save.

(Post licensed and adapted from Bring the Blog)