Mortgage Refinancing with Your Current Lender

Mortgage refinancing allows you to pay off your current mortgage loan and secure a new loan contract at a lower interest rate. Banks don’t want to lose their mortgage notes to other financial institutions and will sometimes offer settlement cost benefits to keep your business.

Ask Your Lender about Settlement Cost Benefits

Call your lender and inquire about the settlement cost benefits available if you choose to refinance. You can use the information to help you compare the costs of refinancing with your current lender to the costs of refinancing with a new lender. Keep in mind that your lender may not be able to offer you the same benefits if your loan is held by one institution, but serviced through another.

Tell Your Lender What Other Banks Offered

If you make an appointment with one of your current lender’s loan officers to discuss your refinancing options, come armed with a list of interest rate quotes from other lenders. If your lender doesn’t quote you the best rate, then and only then should you disclose the interest quotes from other lenders. Your lender has little incentive to give you an interest rate much lower than the one you already have without knowing that you are considered refinancing elsewhere.

Your Current Lender Already Has Your Paperwork

Refinancing with your current lender is convenient because your lender already has copies of all of your vital paperwork. Thus, the refinancing process doesn’t require you to run around attempting to find and copy nearly as many personal documents. Expect any lender you finance with, however, to request permission to pull a recent copy of your credit report.

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