One of the biggest questions for any refinancing applicant is who to refinance with. As with just about any financial product, it’s important to shop around and understand your own goals to find the right lender.
If you’re thinking of refinancing to tap into home equity or change your loan terms, it’s a good idea to check with your current mortgage lender to see what they can offer.
Can you refinance with the same lender?
Yes, you can usually refinance with the same lender that you originally got a loan through. But keep in mind our mortgage lender is the institution that originated your loan, and that may be different from the current servicer. Some mortgage administrators, the folks you send your monthly check to, don’t originate their own loans, so you’ll want to make sure you’re talking to the right kind of institution.
If your mortgage is currently held by a bank or company that originates loans, however, they may be able and perhaps even eager to extend a competitive rate or terms on a refinance, even if another lender originated the loan.
Is it better to refinance with your current lender?
If you’re just looking for the lowest rate, and that’s all you care about, shopping around as widely as you have patience for is the key thing to do. Find the best rate and terms and see if your current lender will match it, but be prepared to go somewhere else if cost is your number one priority.
“Most lenders want to keep their customers, most lenders want to preserve that relationship,” said Joel Kan, associate vice president of economic and industry forecasting at the Mortgage Bankers Association. “They want to keep the servicing of the loan, they want to keep the customer really.”
That means your current lender may be willing to match lower rates offered by a competitor. But in general, shopping…
Read complete post here: