When mortgage rates fall, homeowners often think about refinancing their home loans. If you are in the refinancing loan market, you may be able to get a better deal from your current lender. Can I refinance with the same lender?
Can you refinance with your current lender?
You can refinance through your current lender – provided you qualify – because financial institutions usually want to retain their clients.
The latest report monitoring mortgage loans Black Knight, a leading provider of public property data, shows that only 18% of homeowners in the first quarter of 2019 remained in their current mortgage company after refinancing. The data indicates the refinancing market, where competition for your business is growing.
Is refinancing with your current lender cheaper?
The cost of refinancing in advance can be significant, so experienced homeowners should look around to see if their current lender is offering the best deal. Of course, you won’t know until you get some estimates (more on this later).
You’ve probably built a relationship with your lender to learn about your payment achievements. This can give you leverage to get discounts or special rates, especially if you have excellent credit and a timely payment record.
When is it wise to refinance the same lender?
Sometimes your own lender will lower your offer better than the new one.
They can offer a competitive rate and reduce closing costs. Ask them if they will give you a “loan from the lender” for refinancing fees, such as a quote or title report.
In very few cases, the lender can reduce mortgage rates without refinancing. Instead, they charge a relatively small fee for preparing a document that changes the terms of your existing loan.
However, most lenders today sell mortgages that come from investors. Or they keep loans on their books, while selling service rights. In either case, the end owner or the loan provider are not allowed to change the loan terms.
Refinancing may require waiting
There are many reasons for refinancing a mortgage, for example, to get a better interest rate or to change the term (length) of the loan, or to convert a variable rate loan to a fixed one. Or you may want to refinance the payday loan against the built-up value of the house to pay for remodeling or other things.
The fact is that you can refinance as often as you like, but some lenders are looking for a ‘seasoning’ period between home loans or some time between valuations.