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Can I Refinance My Mortgage With the Same Lender? 

 May 9, 2022

By Scott Teesdale  

minutes read time

If you are considering refinancing your home’s mortgage, one of the questions that you may have is whether you can refinance your mortgage with the same lender you are already using or whether you have to use a different lender. If you have never refinanced a loan before, you may never have had to ask this question before. The simple answer to this question is that yes, you can refinance your mortgage with the same lender.

However, it is important to note that while you can indeed refinance your mortgage with the same lender, it may or may not be in your best interests to do so. Instead of asking if you can refinance your mortgage with the same lender, there are a few questions that may be better to ask. Some of those questions may revolve around the benefits of staying with the same lender and how you know whether staying with the same lender is right for you or not. Read on to learn more about possibly refinancing your mortgage with the same lender. 

Do I have to refinance with my current lender?

No, you do not have to refinance your mortgage with your current lender. You have the ability to refinance with any lender you decide, including your existing lender. There are a number of reasons why someone may be looking to refinance a loan. Learning about the common reasons why you may refinance your loan can help you to understand why refinancing can be beneficial. Some of the most common reasons why you may refinance your mortgage loan are:

  • Interest rates have decreased
  • You are looking to reduce your monthly mortgage payment
  • Your credit score has increased and you are looking to get more favorable loan terms
  • You are attempting to drop PMI payments
  • You want to take cash out of your home (calculate your home equity)
  • You want to pay off your mortgage faster
  • You are looking to switch mortgage types

Should I refinance my mortgage with my current lender?

Whether you should refinance with the same lender or not depends on a multitude of factors. Nevertheless, the question is less about can you or do you have to, and more about should you refinance my mortgage with same lender. It is important to understand that every lender is slightly different, and in turn, the benefits you experience may vary. To determine whether you should refinance with your current mortgage lender, ask yourself the following questions:

  • is my lender willing to provide me with a lower interest rate if I refinance with them?
  • is my lender going to cut down the closing costs if I refinance with them?
  • will my lender offer some financial or other benefits if I refinance with them?
  • how much time will I save vs how much money will I save if I stay with my current lender?

Refinancing your mortgage is all about time and money — how much do you value your time to search for a new lender vs how much money you would save by shopping around.

What are the benefits of refinancing my mortgage with the same lender?

Here are a few of the most common benefits that most people who refinance with the same lending agency may experience.

You have an established relationship with the lender

One of the benefits of refinancing your mortgage with the same lender is that you have an established relationship with that lender. You know what to expect from them as you have worked with them before. You know the level of customer service you will experience with the company. You know if you can get help when you need it. On top of this, many people find it is easier to refinance a loan through their same lender, as that lender already knows your payment history. As such, they may be more willing to refinance your loan, even if your income or credit score has dropped. The may also be willing to refinance your mortgage sooner.

You may get a discount for being a loyal customer

Another advantage to staying with the same lender is that they may offer discounts for being a loyal company. The lender may reduce or eliminate the title insurance fee, may reduce or eliminate the mortgage insurance fee, or may offer a lower loan origination fee. Always ask your current lender what discounts they may offer if you refinance your existing loan with them. 

The closing process could be faster

The final benefit to refinancing your mortgage with the same lender is that the closing process may be faster. The lender likely already has employer information, paystubs, and bank account information. This may allow them be able to finish the closing process faster. Ultimately, this can help you to take money out of your home faster or lower your mortgage payment quicker. 

Is it easier to refinance with the same lender?

In some cases, it may be easier to refinance with the same lender. However, every lender is different, and their lending process varies. If you bought your home within the last few years and are looking to refinance with the same lender, the process may be fast and easy, as they likely already have your current and correct information on file. If you have had your mortgage for longer than five years, odds are, the lender is going to have to reverify information, and the length of time and the ease of refinancing may not be that easy or fast.

How long does it take to refinance with the same lender?

When you are debating on mortgage lenders for a mortgage refinance, deciding between the current lender and a different lender can be challenging. One of the factors that you may consider is how long it takes to refinance with the same lender versus the existing lender. Once again, this can vary a lot. Many factors come into play, including how long ago you took out your home loan, if you took out the home loan with the existing mortgage company or whether they took over the loan, if your credit score and income have changed, and who the lender is. In some cases, it may be slightly faster to refinance with the same lender, while in other cases, it may not be that fast.

What happens to my escrow when I refinance with the same lender?

Every loan company is different, so you may experience differences from one company to the next. However, in most cases, your escrow account remains open and intact if you refinance with the same lender. If you decide to finance with a different lender, the account will closed, usually within 30 days.

Do you need an appraisal to refinance with the same lender?

Regardless of whether you are taking out a refinance loan with your current mortgage lender or a different one, you will likely need to have an appraisal completed. The real estate market changes rapidly and before a bank or lender can extend you additional credit (your new mortgage), they will need to learn how much your home is worth. An appraisal also helps to determine if you will still require PMI because if the homeowner overextends themselves, banks will need additional insurance to cover their risk in case of loan default. In sum, nearly every company that offers refinance loans requires an appraisal to be completed within the last year.

Is it better to refinance with a local lender?

If you are considering refinancing or remortgaging your home, you may wonder if it is better to refinance with a local lender. Refinancing with a local lender may have some perks. A local lender is usually smaller than a national lender, and as such, they can offer more personalized and one-on-one service. Another benefit to refinancing with a local lender is that they know your local community. They can be a wealth of information when it comes to understanding your home’s property value and what can be done to increase that.

They can also work with you to ensure you are getting the right type of loan for your needs and for the situation. Additionally, when you work with a local lender, you can actually sit down with the lender face-to-face. You can put a name to the face and develop a personal relationship. You may even be able to swing by the office to sign an overlooked document or drop off a paystub, helping to move the loan along. Finally, you can also develop a personal relationship with a local lender. This may come in handy if you ever decide to refinance again in the future or purchase a new home. 

Do your research to find out if refinancing your mortgage with the same lender is ideal for you! 

Can I refinance my mortgage with the same lender? This is a question that you may be asking yourself if you are considering refinancing a loan. The most simple answer to this question is that yes, you can refinance your mortgage with the same lender as long as you meet their current lending criteria. However, this question is not always the question that you should be asking though. The question that most people should be asking is whether refinancing a mortgage with the same lender is really the right move for them. By comparing interest rates and mortgage terms, and possibly negotiating with your existing lender, you will be able to find the lender that offers you the best terms. This will help you get the mortgage loan product that is right for you and may help you to save money. 

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I use data and technology to help Millennials navigate the ins-and-outs of buying or selling a home in today's market. From appraisals to mortgages to zoning, I cover it all with the goal to teach others. Connect with me on social via the icons above.

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