I got an email from someone just the other day complaining that his mortgage broker couldn't honor his lock because everybody was so backed up. His lock expired before he could get his loan to closing. He had an incredible rate, too. While interest rates had zoomed to the mid 6's in late July, his locked rate was in the low 5% range. But all he could do was sit and watch his ultra-low mortgage rate ride off into the sunset. Git along little dogie.

But quietly over the past couple of weeks interest rates have headed back down. Not quite to the lowest of the lows in late June and early July, but we can still see them from here. Rates have come down almost one-half of a percent since we saw rates spike last month. It hasn't been a huge rally, but a respectable one. So what do you do if your rate has gone bye-bye?

First, check with your current lender. While it may leave a bad taste in your mouth to do so, (after all, they goofed around and didn't close your loan on time, right?) but they still have your loan file all ready to go. They might even be a little more conciliatory this time around and waive a fee or two. If you're at a mortgage broker, ask them to lock you in with someone else. You might be told that they can't do that or that there's a fee for doing so. If that's your case I'd transfer the loan to somewhere else.

If you're at a direct lender, ask them to re-lock you. Sometimes you may not have as much luck here, because a loan officer at a direct lender typically has to get special permission from their mortgage pricing department to re-lock you. But you may have a little leverage here. Your lender has done a lot of work up until this point and has gotten paid exactly zero. They may have also committed a loan (with your name on it) and booked the income. No loan, write-off the income. Remind your loan officer of this fact -- trust me, they know -- and wait for the outcome. As loan volumes decrease for lenders and mortgage brokers alike, gaining some concessions might be in order.

Did you strike out? Then you'll need to cancel the loan and apply somewhere else. There's some paperwork your lender needs to fill out and you'll need to formally request a transfer, but it's really not that big of a deal. You'll also want your appraisal transferred to your new lender as well. One reminder however, if you haven't paid for your appraisal don't expect it to be transferred. Once the transfer is made you're back in the driver's seat. Now you can lock in the lower rates. Don't get burned twice. You already know the frustrations of waiting for a loan to close. Act quick. Lock now. Move on.