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How to Refinance With Your Current Lender

Maurie Backman
Kristi Waterworth

Our Mortgages Experts

Ashley Maready
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

There are a lot of different reasons people have for wanting to refinance their mortgage. Maybe they're looking for a change in terms, or want to cash out some equity for a big project at home. Deciding to refinance is the first step, but the next is which lender to do that with.

Should you refinance your mortgage with your current lender? How do you go about that? Let's walk through what that looks like.

Can you refinance with your current lender?

If you're looking for a new mortgage, it is possible to refinance with your current lender. Refinancing simply means paying off your existing loan and replacing it with a new one with better terms. Generally, that means a lower interest rate on your mortgage. You can also change the length of your repayment period when you refinance. For example, you could go from a 30-year mortgage to a 15-year loan and pay off your home in half the time.

To refinance with your existing mortgage lender, let your lender know you're interested in getting a new loan. Your lender will tell you what information to provide to get approved for a refinance. Generally, you need to supply your lender with recent pay stubs, bank statements, and tax returns. Your lender will verify your employment just like with your initial loan, and also run a credit check to see if your credit score has changed since you signed your original loan.

Keep in mind that your current lender may reject your mortgage refinance application. That may seem strange -- after all, it approved you for a mortgage loan in the past, and you are paying it off. But while your lender can't take your existing loan away if, for example, your credit score plunges, it can deny you a new mortgage loan. Even if this isn't the case, it often makes sense to speak to the best mortgage lenders in order to get the best refinance terms possible.

Is it better to refinance with the same lender?

Refinancing with your current lender has its benefits. Since you already have a relationship with that lender, if your mortgage is in good standing, your lender may be better able to offer you a lower interest rate on your refinance. Your lender might also offer you lower closing costs on your refinance, which saves you money as well.

Another benefit to using your current lender, if you have an FHA mortgage, is that you may be eligible for an FHA streamline refinance. An FHA streamline refinance often requires no income verification or appraisal, though you still have to pay some closing costs. These are a really low stress way to refinance your home loan during a period when interest rates are dropping, for example, since you can't take more than $500 out of an FHA streamline refinance.

That said, it always pays to shop around with mortgage refinancing lenders to see what offers you get. Your current mortgage lender may not be able to offer you the most competitive rate on your loan, or the lowest closing costs. Getting a few offers helps you reap the most savings in your mortgage refinancing.

Will refinancing with my original lender save me money?

In some cases, you may save money with a refinance loan from your current lender. If you're a borrower with an account in good standing (meaning you're up to date on all payments), your lender is more likely to offer you an attractive new mortgage with a low interest rate.

You may also be able to use offers from other lenders to negotiate with your current lender. For example, if your current lender offers you a great interest rate for refinancing but higher closing costs than you'd be charged elsewhere, you can ask for lower lender fees to seal the deal. Because your lender knows you and may be motivated to keep you on as a borrower, it may come down on refinance closing costs.

Refinancing a mortgage could help you lower your monthly payments and save money on interest in paying off your home. And in many cases, using your current lender for your refinance makes sense. Ultimately, gathering offers is the best way to know if you're getting a good deal on a refinance.

Either way, before you agree to a refinance offer, use a mortgage calculator to see how much savings you get compared to your original loan. Make sure you're lowering your monthly payment enough to compensate for the closing costs you're charged upfront.

Still have questions?

Here are some other questions we've answered:

How much could I save by refinancing?
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The Ascent's best mortgage refinance lenders

Refinancing your mortgage could save you hundreds of dollars for your monthly mortgage payment and secure you tens of thousands of dollars in long-term savings. Our experts have reviewed the most popular mortgage refinance companies to find the best options. Some of our experts have even used these lenders themselves to cut their costs.


  • This will vary based on your mortgage program, but you should generally anticipate having to pay some closing costs. They do tend to be less expensive than for a purchase loan, but there are still some fees that have to be covered.

  • YES! As long as your lender offers other loan types, it can theoretically refinance you into any type of loan offered that you qualify for. If, for example, you started with an FHA loan and are looking to refinance into a conventional loan, that is entirely possible. However, if you want to refinance from your FHA into a VA loan, for example, and aren't a veteran, that wouldn't be an option.