Is it better to refinance with current lender or bank?

One of the most important decisions for every refinancing application is to choose who to refinance with. To select the correct lender, like with any other financial product, it’s critical to shop around and understand your personal goals. Your mortgage lender has originated your loan, which may or may not be the same as your current servicer. Some mortgage administrators, the people you submit your monthly check to, do not originate their own loans, so be sure you’re speaking with the correct type of institution. If your mortgage is being held by a bank or loan origination firm, they may be able and even willing to offer a favourable rate or conditions on a refinance, even if the loan was originated by another lender.

Choosing to refinance with the same lender may assist ease the process of replacing your old mortgage, but there are a few things to think about before you do so. It’s a good idea to look into other lenders first to be sure your present lender is offering you the greatest bargain.

Is it possible to remortgage with the same lender?
In a nutshell, you can refinance with the same bank or lender. If you’re happy with your present lender, that may be enough encouragement to refinance with them. While the benefits of strong customer service are substantial, you should still make sure your current lender can satisfy your refinancing needs before signing on the signed line. If you do decide to work with your current lender, be certain that you completely grasp the conditions of the new loan. Just because you’ve worked with it before doesn’t mean you shouldn’t go over it again.

Closing fees for refinancing through the same lender
Closing expenses for a refinance are the same as they were when you originally took out your current mortgage. Depending on the size of your loan, refinance closing charges might range from 2% to 6% of the loan amount.
Nevertheless, if you refinance with the same lender, you may be able to save money on closing costs, according to Barry Zigas, a senior fellow and former housing policy director at the Consumer Federation of America (CFA). It is a non-profit consumer advocacy group.

Is refinancing with your present lender preferable?
To summarise, it is not always preferable to refinance with the same mortgage provider. It may be tempting to apply for refinancing with your present lender and overlook other lenders if you like them. After all, it can save you the effort of switching mortgage companies, filling out more paperwork, and learning new processes. However, adopting a decision merely for the sake of convenience might be an expensive error.

When you engage with your present lender, their priority is likely to be retention, but that doesn’t guarantee they’ll give you the greatest price. Your present lender may offer you a lower rate than you already have, presuming you’re willing to accept their lower rate since it’s more convenient. If you believe it is time to refinance your mortgage, use Credible to do the numbers and compare rates from several mortgage providers. Having all of the information, including lender fees and other expenditures, can assist you in deciding whether or not to switch mortgage lenders.