Mortgage Refinance Surge Tips for 2009

Mortgage Refinance has created a surge in the lending business, somewhat unexpectedly and during uncertain economic times. Rates have dropped below 6% when the Federal Reserve made the decision to buy mortgage-backed securities to stimulate consumer financing once again.

The sudden drop in rates is proof enough the mortgage finance surge has found lenders under-prepared. This heightened activity seems to be happening during a time when they could really maximize on the opportunity to make up for the losses from last year’s fiasco. Short-handed lenders are having difficulties following up with prospective customers and there are warnings to expect delays in applications as understaffed lenders race to fulfill requests for mortgage refinance.

Buying mortgage-backed securities has already started to take place as of the second week in January of 2009, as the plan of action the Federal Reserve announced in November of 2008. This has spurred even more activity for the mortgage finance business, also adding to the struggle lenders are currently experiencing after the financial downturn of last year, forcing lenders to downsize.

Other department employees experienced in finance within the lending institutions have been temporarily transplanted to handle the increasing mortgage refinance applications. The anticipation of rates climbing and back to their previous position has created a sense of urgency in people looking to refinance. It is possible to see change from hour to hour after tracking the history of rates over the past years so the concern is understandable.

To make up for a shortage in staff, people from other departments experienced in finance within the lending institutions have been transplanted to handle the increase in mortgage refinance. The possibility of rates going back up has created a sense of urgency and worry. As we know the history of fluctuating rates, it is possible to see change from hour to hour.

Some consumers have been told it could be two weeks before lenders can follow up on messages left about mortgage refinance. In this situation, take the time to contact as many lenders as it takes to get through. Make it a point to be in touch with someone that can actually lock in the rate without compromising the all encompassing loan process.

When a prospective customer is told to apply on the Web after finally getting through to a live person, it becomes obvious it is time to be a little more aggressive in approach. For those consumers that do manage to reach a lender it would be wise to know the most recent rate available. Some online lending sites have not posted the best rates for fear of being bound by them.

Now is a good time to be in touch with connections directly related to the lending industry or connections with a real estate agent that can act as a liaison between the lender and customer looking for a mortgage refinance. Keep in mind there is a good possibility the lender may not reply at all to the message or when the online application was submitted. With business booming for lenders, it would be smart to pursue and secure that magic number before it is lost.