Refinance with the same lender?

11 Replies

Hello,

I have this notion ( perhaps erroneous) it may not be a good idea to refinance with the same lender,since more often than not the current lender may not be too motivated to lower the rate for existing customers and they would rather lower rates to entice new customers. I am interested to hear thoughts from other members to see what their experiences have been "typically'" in this regard.Appreciate your inputs.

Thanks

@Peter Morgan The same lender shouldn't mind refinancing you to a lower rate, if they are looking out for your best interest, and they will make another commission too. Depending upon the loan type, there are options for a streamline refinance which can be a lot smoother and no appraisal needed. Definitely check on rates for different years,10,15,20,25,30 can have different rates and you may see that a 10 or 15 yr loan isnt that much more than a 30 saving a ton on interest and paying it off sooner.

@David Robinson

Thank You for the response. My current lender updates rates daily on their website and they are not as competitive as other lenders. Last time they offered me those rates during my purchase were with few strings attached ( such as must do biweekly etc).I reached out to other lenders and they offering to waive appraisal fees so was wondering if i should even bother to reach out my current for refinance.

I think it depends on the type of financing you have on the property. For some lenders I have talked with they are more than willing to refinance with the current rates because the term gets extended. A local lender I was shopping said they would waive their prepayment penalty if I refinanced with them otherwise they would have a stepdown penalty. If you have any doubts with your current lender you can always check with a mortgage broker to be sure what your best options are.

@Peter Morgan I assumed it was a commercial loan. If it's on your primary residence I've never had any problems refinancing to a lower rate. Wouldn't hurt to ask, the worst they can say is no and then you can shop around.

@Peter Morgan In my opinion refinancing with the current lender,servicer, should be easier and cheapest, since they already have the loan in house. It is not always the case, and could be worth shopping around. Also ask how you can skip two payments, if done correctly I have seen it work.