REFI QUESTION THANKS FOR YOUR HELP!

2 Replies

Hello ALL! Thanks in advance for your replies. I house hacked a duplex and it is now time to refinance out from the FHA owner occupy into a CONV loan. My question is should I use the same bank that owns the loan to do the refi with? The reason I am skeptical is would the same bank be hesitant to give an appraisal that would now remove PMI as it means less payment to them? Also, would the same bank be hesitant to give a better rate than I am paying now as it means less payment to them? In other words to me it seems there is a conflict of interest for the same bank to refi me as in the end if done correctly I should no longer have PMI and a lower payment both of which is less money for the bank. Thanks again for any advice.

Originally posted by @ANTHONY SPOLIZINO :

Hello ALL! Thanks in advance for your replies. I house hacked a duplex and it is now time to refinance out from the FHA owner occupy into a CONV loan. My question is should I use the same bank that owns the loan to do the refi with? The reason I am skeptical is would the same bank be hesitant to give an appraisal that would now remove PMI as it means less payment to them? Also, would the same bank be hesitant to give a better rate than I am paying now as it means less payment to them? In other words to me it seems there is a conflict of interest for the same bank to refi me as in the end if done correctly I should no longer have PMI and a lower payment both of which is less money for the bank. Thanks again for any advice.

 You've actually got it backwards. The money isn't in the monthly payment or any of that. The money is in the sale of a fresh new mortgage on the secondary market. The $1500 in origination charges isn't the profit center, the sale of a fresh new mortgage for $10k on the secondary market is where the profit is, that $1500 is small potatoes.

No reason not to call your original loan person.