Is refinancing with the current lender the best option?
Answer:Yes and no. Refinancing with the current lender has its pros and cons. A lender that knows you are trying to refinance to win a better rate may indeed offer you a refinance to a rate that will make you interested. However, other lenders will get you even lower rates because they will be trying to win your business, while your current lender may be trying to keep you as a borrower, but will be willing to give up as little as possible.
Why refinance with the current lender?
If the lender who issued the original loan to you still holds the loan in their portfolio, they might be able to waive certain loan settlement fees at their discretion since they hold all your loan history (appraisal, credit report, etc.). Has the loan been sold to the secondary market (Fannie Mae, Freddie Mac), there is little flexibility for your lender to waive fees at his own judgment, and all the benefits from refinancing with the current lender will be lost. You may still choose to refinance with your lender, but there will be less possible benefits.
Another thing, even if your current lender is still in possession of your loan, they may not be willing to give you a streamline refinance whatsoever and refinancing with a new lender may get you better loan benefits.
However, what you still could do regardless of whether your lender has your loan or not is shop for the best possible refinance quote and dispute it with your lender, if you would like to give a try with them.
Link:
Link:
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
| Not at all | Definitely |
Mortgage QnA is not a common forum. We have special rules:
- Post no questions here. To ask a question, click the Ask a Question link
- We will not publish answers that include any form of advertising
- Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
Common misspellings: mortage and morgage