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.

Consumers contacting lenders for mortgage refinance have been unsuccessful in speaking to anyone directly when calling lenders and some are left with the option of leaving a message for a return call. Frustrated consumers are unable to simply leave a message as lender mailboxes and voicemail are unable to support the volume of callers.

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.

If told to apply directly on their website for a mortgage refinance, after going through the trouble of finally getting to a live person, it is obviously time to take a more aggressive approach. For those who do manage to reach a lender, know the most recent rate available. This will help out as some online lending sites will not post the best rates out of fear of being bound by them if they should change.

Any connections directly related to the lending industry or connections with a real estate agent that can act as a liaison to help deal with a mortgage refinance will help greatly. There is a strong possibility some lenders may not reply to the message or to an online application. With business presently looking up for lenders, it would be smart to secure that magic number by not waiting around for the lender to respond.