Asked by: Petrus Schoettler
personal finance home financing

Can you refinance mortgage with the same bank?

Last Updated: 24th June, 2020

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There is no rule that says you have to refinance with your current lender. In fact, many homeowners refinance with a different mortgage company. Sometimes it's smart to go with your current lender; at other times you'll do better with a new one.

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Also to know is, can you refinance a home loan with the same bank?

There's nothing cheap about refinancing a mortgage. You don't have to stress about a down payment, but you will have to pay closing costs. But if you refinance with your same lender, the bank might waive or reduce some of the closing costs. That's less money you'll have to spend out-of-pocket.

Furthermore, can I refinance car with the same bank? The answer to whether or not you can refinance an auto loan with the same bank depends. While it is only sometimes possible, you should always check with your current lender first if you're considering refinancing.

Herein, is it better to refinance with your current mortgage company?

If you refinance with your current lender, you may be able to get a break on certain closing costs, such as the appraisal fee. You may be able to negotiate better terms. You have likely already met with your lender and its loan officers, which could give you leverage when trying to refinance.

Which bank is best for refinancing?

Mortgage Refinance Lenders

  • Bank of America: Best Lender Borrowers With Debt-to-Income Ratios As High As 55%
  • Chase: Best Lender for Up to $3,000 Cash at Closing With a Grant and Education Course.
  • Guild: Best Lender for Financing Up to 97% of Your Home's Appraised Value.
  • Quicken: Best Lender for Customer Service.

Related Question Answers

Shahnaz Mascuñano

Professional

Does refinancing hurt credit?

Refinancing can lower your credit score in a couple different ways: Credit check: When you apply to refinance a loan, lenders will check your credit score and credit history. This is what's known as a hard inquiry on your credit report—and it can temporarily cause your credit score to drop slightly.

Rytis Beristain

Professional

Why you shouldn't refinance your home?

Another reason not to refinance is poor credit. You won't be able to qualify for a loan with a good interest rate if you have below-average credit, so you should work on raising it before you try to refinance. If you can't afford to pay the closing costs associated with refinancing, then you may also want to hold off.

Idan Tokmachev

Professional

How much does 1 point lower your interest rate?

One point costs 1 percent of your mortgage amount (or $1,000 for every $100,000). Essentially, you pay some interest up front in exchange for a lower interest rate over the life of your loan.

Janna Hennrich

Explainer

Is it worth refinancing for 1 percent?

A one percent interest rate reduction may net significant savings on a $1 million mortgage but will be less beneficial for a $100,000 mortgage. There are costs associated with refinancing that are important to weigh up if you're thinking of refinancing (covered in more detail below).

Sghir Lansing

Explainer

How much are closing costs for refinance?

On average, refinance closing costs range from 3 percent to 6 percent of your loan amount (again, depending on your location and your lender).

Rosica Rubalcaba

Explainer

Why do lenders want you to refinance?

A common reason for refinancing is to save money on interest costs. To do so, you typically need to refinance into a loan with an interest rate that is lower than your existing rate. Especially with long-term loans and large dollar amounts, lowering the interest rate can result in significant savings. Lower payments.

Awatef Thiery

Pundit

Do and don'ts of refinancing?

If you refinance your home and fall behind on the mortgage, the lender can foreclose and you could lose your home. Don't refinance an unsecured loan as a secured loan. If you do, you risk losing the property that you have pledged as collateral. Don't refinance because of pressure from a debt collector.

Maricruz Wolther

Pundit

What is the best time to refinance your home?

Best Time of the Month to Refinance
By refinancing during the last half of the month, you may be able to secure better terms due to your loan officer's desire to meet monthly targets. Interest rates are rising from the record lows of late 2012, so now may be a good time to consider refinancing.

Talha Schrottenbaum

Pundit

Why refinancing is a bad idea?

Refinancing your mortgage can be a good or bad idea, depending on your motivation and goals. Homeowners who refinance can wind up paying more over time because of fees and closing costs, a longer loan term, or a higher interest rate that is tied to a "no cost" mortgage.

Ousainou Blumenheim

Pundit

Who is the best mortgage company to refinance with?

NerdWallet's Best Mortgage Refinance Lenders of September 2019
  • Navy Federal: Best for government loans.
  • SunTrust: Best for customer service.
  • Guaranteed Rate: Best for customer service.
  • Bank of America: Best for traditional lender.
  • loanDepot: Best for non-bank lender.
  • Alliant: Best for credit union lender.

Hripsime Gensch

Pundit

Can I refinance my mortgage with no closing costs?

The good news: You can score a no-closing cost refinance. With a no-closing cost refinance, you won't have to pay thousands in upfront closing costs for things such as appraisal, underwriting and processing feesthe mortgage company will waive them.

Viktoryia Lapetra

Teacher

What is the average closing cost to refinance a mortgage?

Average Mortgage Refinance Closing Costs 2017
The average closing costs to refinance a mortgage loan in 2017 is 1.5%. This figure will vary based on different factors such as the loan type and your credit score. On a $200,000 mortgage the average closing costs will come out to 1.5%, or $3,000.

Jinbo Mazzei

Teacher

What is the current interest rate for refinancing a home?

The current average 30-year fixed mortgage refinance rate climbed 6 basis points from 3.62% to 3.68% on Monday, Zillow announced. The 30-year fixed mortgage refinance rate on January 6, 2020 is up 5 basis points from the previous week's average rate of 3.63%.

Yaisa Helmonds

Teacher

How much equity do I need to refinance?

When it comes to refinancing, a general rule of thumb is that you should have at least a 20 percent equity in the property. However, if your equity is less than 20 percent, and if you have a good credit rating, you may be able to refinance anyway.

Potenciana Schiavo

Teacher

What credit score do you need to refinance mortgage?

Most lenders require a minimum credit score in the region of 620 in order to approve a refinancing application. Federal Housing Administration programs typically have lower minimums, although their lenders can insist on higher credit score requirements for some borrowers.

Pedrona Windmoller

Reviewer

What should I watch out when refinancing?

Here are nine key considerations to review before applying for a home refinance.
  • Know Your Home's Equity.
  • Know Your Credit Score.
  • Know Your Debt-to-Income Ratio.
  • The Costs of Refinancing.
  • Rates vs.
  • Refinancing Points.
  • Know Your Break-Even Point.
  • Private Mortgage Insurance.

Misho Coutant

Reviewer

How do banks make money from refinancing?

Refinancing a loan can save you money by lowering your interest rate, but it also requires you to pay fees. For example, you may have to pay an application fee which allows institutions to make more profit. If you're refinancing a mortgage, you'll also have to repay your closing costs.

Gnima Pombal

Reviewer

How much negative equity can a dealer take?

You have negative equity of $3,000, which must be paid if you want to trade-in your vehicle. If the dealer promises to pay off this $3,000, it should not be included in your new loan. Nevertheless, some dealers add the $3,000 to the loan for your new car, deduct the amount from your down payment, or do both.

Bineta Touza

Reviewer