- Refinancing with your current lender can offer benefits such as loyalty discounts, easier processing, and better chances of loan approval due to your established history.
- However, sticking with your current lender may cause you to miss out on potentially lower fees, rates, or better loan terms offered by a different lender.
- Choosing a new lender could provide better mortgage rates, more favorable terms, or more modern technology, but it may also involve more paperwork and a longer approval process.
- It’s important to shop around and compare quotes from multiple lenders, including your current one, to ensure you get the best rate and terms for your refinance.
You’re eager to refinance your mortgage loan and ready to start hunting around for a new lender. But you wonder: Can you refinance with the same lender? The answer is yes, and your existing lender may actually offer a better refinance deal. Then again, it often pays to throw several darts if you want to hit a bullseye, which means shopping around among several different financing sources.
Is it better to refinance with your current lender or a new lender? For answers, let’s dig into what’s allowed, the pluses and minuses of refinancing with your current lender versus a different one, and how to shop around and select the right lender.
Can You Refinance With the Same Lender?
Refinancing with your existing lender could yield a better deal than a competing lender would. That’s because your current lender will likely want to keep you as a customer, possibly providing discounts or incentives to earn your repeat borrowing business, such as a more competitive interest rate.
Of course, consider that the lender you’re with now may not be the lender you originally closed the loan with. If not, that means your mortgage was sold since you closed. Still, your present lender or servicer is often a good place to start when pondering a refinance.
How we source rates and rate trends
Rates based on market averages as of Dec 02, 2025.Product Rate APR 15-year Fixed Refinance 5.37% 5.42% 30-year Fixed Refinance 6.35% 6.37%
Advantages of Refinancing With Your Current Lender
Your current mortgage lender may be able to offer you the best rate and the simplest requirements because of your history as a customer – especially if you’ve made all of your payments punctually.
Your existing lender may even make the process easier since they already have your information on file. And because you already have an established relationship, it can give you added confidence in continuing to work with them.
Nadia Evangelou, senior economist and director of Real Estate Research for the National Association of Realtors, agrees that sticking with your present lender is often the easiest choice.
“Many lenders offer streamlined refinancing for existing customers, reducing paperwork and speeding up the process,” explains Evangelou.
Other benefits to refinancing with your existing lender include:
- You may qualify for a loyalty discount or reduced fees.
- The lender may waive the property appraisal requirement if you’ve been a good customer or had a recent appraisal done.
- You have a better chance of loan approval because the lender knows your payment history.
Disadvantages to Refinancing With Your Current Lender
On the other hand, going with your current lender can have a significant drawback.
Without exploring other opportunities and different lenders, you could miss out on lower fees or rates or better loan terms available elsewhere.
Not knowing whether you could have saved money or enjoyed a more flexible loan by taking your borrowing elsewhere could weigh on your mind long after closing on a refinance with your current lender.
Should You Refinance With a Different Lender?
Can you refinance with a different lender? Absolutely – Again there is no rule forcing you to stick with your existing bank or lender if you want to refinance and you qualify for it. Take a moment to explore the advantages and disadvantages of shopping around for your next home loan.
Pros of Choosing a Different Lender
Ready to consider a fresh financing source? Personal finance expert Andrew Lokenauth points out several positives.
“You may be able to score a lower rate or more preferred terms with a new lender. This also provides a fresh start if you are unhappy with the current service from your existing lender. Another lender could also boast more modern technology or resources that can make the process easier,” he says. “Plus, it provides an opportunity for fostering a new relationship with a new lending professional.”
Switching to a new lender makes the most sense when you can secure a lower mortgage rate, better loan terms, or lower fees.
“If your financial situation has improved since your original loan, other lenders may be willing to offer you a better deal than your current one,” continues Evangelou.
On the flip side, jumping ship could lead to borrower regret, especially if it leads to a longer underwriting and approval process, comes with stricter qualification rules, requires more paperwork, and/or necessitates a new property appraisal and associated fee.
Switching lenders could also require more time and effort on your part to establish a relationship with the new lender.
Get Quotes from Your Lender and Competitors
The experts agree: While it involves an investment of your time, it can’t hurt to shop around and get rate quotes and offers from several different refinance lenders, including your existing lender as well as local banks or credit unions. By gathering multiple rate quotes and offers, you can make a more well-informed decision and even use the most preferred offer as leverage to get other lenders to beat that deal.
“Refinancing is one of the biggest financial decisions you will make, and even a fraction of a percentage point in interest savings can add up to thousands of dollars over the life of your loan. Shopping around ensures you will get the best rate and most favorable terms,” Evangelou continues.
Request Loan Estimates
When refinancing, start by checking with your current lender and then gather loan estimates from multiple lenders. Some lenders may offer a soft credit pull, which allows them to review your credit profile and provide an accurate rate and fee estimate without affecting your credit score.
Once you’ve collected your quotes, working with a loan officer you trust can help you compare your options. Even if they don’t initially offer the best terms, they may be willing to match or beat a competitor’s offer to earn your business.
Ask for PAR Rates
When requesting rate quotes, ask for the “PAR” rate—this is a rate without any fees attached, making it easier to compare interest rates and closing costs separately. It’s important to research lenders that align with your refinancing goals, whether that’s securing a lower interest rate, reducing your monthly mortgage payment, shortening your loan term, or paying off a portion of your mortgage.
Compare Loan Estimates Side-by-Side
Each lender will provide a loan estimate document outlining your loan terms, estimated closing costs, new monthly payment, and other applicable fees. While these estimates may not be exact, they offer a useful comparison tool across lenders.
For the most accurate comparison, try to request loan estimates on the same day.
“Always get everything in writing. Don’t just focus on your monthly payment – look at the total cost over the life of the loan,” recommends Lokenauth.
Consider Your Loan Type
Keep in mind that if you have a specialized loan type, such as an FHA, VA, or USDA loan, you may be a bit more limited here. Not every lender offers FHA, VA, or USDA refinance loans.
How to Choose the Right Lender
What qualities should a good refinance lender have? Lokenauth sums it up.
“The lender should have a clear communication style, competitive rates, fair and transparent fees, a good technology platform, and a strong reputation for great customer service,” he says. “Look carefully at online reviews and ratings for each lender.”
The lender ideally should:
- Understand your financial objectives
- Offer several different loan options
- Be transparent about closing costs and interest rates
- Be flexible on eligibility requirements
Be wary of any lender candidate that requires you to pay for a quote or loan application.
Moving Forward with the Refinance
After you’ve done your homework, learned the costs involved, and whittled down your lender list, it’s time for action. Be prepared to go through a process similar to what was required when you took out your original mortgage loan. That means gathering and submitting the requested documentation, locking in your interest rate, awaiting an underwriting decision, and closing on the refinance loan.Ready to get started?
Apply for a refinance with Refi.com here.
