It might be easier to refinance with the same lender, since you already have an established relationship. The company has your information on file, including your payment history and financial details, so it could simplify some of the documents required for refinancing. The short answer is yes, you can refinance with the same bank or lender. This doesn't mean there aren't advantages to refinancing with your current lender.
Freeborn says Discover Home Loans keeps existing information on file for previous loans that its customers applied for. This can move the refinancing process forward at a faster pace. But the truth is that refinancing should take just as much effort, regardless of the lender you use. Documentation and qualification requirements are largely based on the type of loan you are using, not on the lender.
Determine if you may qualify for a refinance loan. Ask your lender how much you still owe on the original mortgage. Next, find out how much your house is currently worth. Ask a real estate agent for a quote if you don't know what price similar homes are being sold in your neighborhood at.
If you owe much more than your home is worth, you probably don't qualify for a refinance. The bank will ask you for proof of income in the form of pay stubs, W-2 forms, and income tax returns. Keep current bank and credit card statements with you. Your lender will want to know the details of any other debt, including auto loans, home equity loans, or home equity lines of credit.
Yes, you can refinance a personal loan with the same bank, but not all banks allow you to do so. If you can get a lower interest rate than your original loan, there are minimal fees, and you can't get a better offer from another bank, then it makes sense to refinance the loan with the same bank. While low mortgage interest rates may encourage many homeowners to restructure their finances, the decision to refinance their mortgage should be made based on their personal financial circumstances. When looking to refinance, remember that your lender or loan servicer knows your current interest rate.
The best way to lower the interest rate on a personal loan is to refinance it with another lender. Some lenders offer “no cost” refinancing, which generally means that you'll pay a slightly higher interest rate to cover closing costs. Given these changes, it is advisable to consult a tax advisor for individual information on the impact of refinancing on your taxes. A common mistake homeowners make when looking for a refinance loan is to just look at interest rates.
And yes, this is true even if your new monthly mortgage payment will be lower, thanks to that lower interest rate, after refinancing. If your score has dropped too low since you first applied for your loan, you may not qualify for interest rates low enough to make refinancing your loan a wise financial decision. However, some homeowners whose homes have fallen in value since the date of purchase may find that they will have to pay the PMI for the first time if they refinance their mortgage. While many borrowers focus on the interest rate, it's important to set your goals when refinancing to determine which mortgage product meets your needs.
Choosing to refinance with the same lender may seem like the simplest and most streamlined solution to replace your current mortgage, but there are many things to consider before taking that step. Holden Lewis, financial advisor at Bank Rate, suggests considering refinancing the loan for a shorter term if your budget can afford it. Lenders even employ “retention” staff whose job is to prevent borrowers from refinancing with other mortgage lenders. Conventional wisdom says you'll need 20% to refinance with a conventional loan, but in fact, you'll only need 20% if you want to avoid paying for mortgage insurance or plan to refinance with cash withdrawal.
However, you could see lower closing rates if you refinance with the same lender, because lenders recognize that they can lose if you take your business somewhere else. . .