How to Refinance a Mortgage at the Same Bank

When mortgage rates drop, it can be financially beneficial to refinance your mortgage. You could take cash out of the equity you have in your home, or simply save money on your interest and monthly payments. Refinancing your mortgage at the same bank where you initially financed your home can allow you to cut down on closing costs, as some banks will give you discounts on fees or eliminate them completely because you are an existing customer.

Difficulty: Moderately Easy

Instructions

1. Contact the loan representative who helped you with your original mortgage. If this is not possible, ask someone you trust at your bank to put you in contact with a new loan officer. Tell the loan officer you want to refinance your existing mortgage.

2. Complete an application with the mortgage representative, either in person or over the phone. She will have access to much of the information on your current mortgage. It is important to complete the application with the loan representative as opposed to using a Web-based application because this allows you to deal directly with your chosen representative.

3. Review the Truth In Lending (TIL) and Good Faith Estimate (GFE) that are given to you when you complete the application to ensure that the terms being offered are to your liking. A TIL will show the APR being offered, and a GFE will show you all of the fees being charged.

4. Provide any documentation requested by the loan officer, such as income verification or a home appraisal.

5. Wait for the loan to be underwritten. Depending on your bank, this could take anywhere from a few days to several weeks. When the bank has completed the process, your loan representative will contact you to let you know your loan is ready to close.

6. Sign closing documents with your loan officer or a closing agent.

7. Make your required payments to your bank as normal, using your new loan number.

Tips & Warnings

• During the application process, be sure to inform the loan officer that you are looking to obtain a discount by refinancing through the same bank. He may be willing to negotiate your fees or loan term.

References

• PBS: Refinancing Your Mortgage

Resources

• Bank Rate: Mortgage Refinancing Calculator

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