Can You Refinance With the Same Bank?

Read Time: 4 minutes

The short answer is yes, you can refinance with the same bank you originally financed your home loan with. Doing so can make the refinancing process easier, and sometimes, it’ll make the process cheaper.

However, refinancing with the same bank or lender without checking out all your options can hurt you in the long run. Other lenders are going to want to refinance your loan, and they may offer you a better deal. Here’s a breakdown of when it’s a good idea to refinance with your current lender versus switching to a new one.

Should You Refinance With the Same Lender?

Whether or not you should refinance with your current lender depends on the deal they offer you. If your current bank gives you a financially-competitive refinancing offer, the ability to refinance with the lender who already has your loan information on file will make the process easier and it could save you extra money in closing costs.

But if cost is your top priority and other lenders are offering better interest rates, it might be time to switch lenders.

Pros of Refinancing With the Same Lender

When refinancing with the same lender that originated your loan, there are a few advantages that come into play:

  • The process is easier. Your information is already on file, and you know you’re working with a team that has helped you before.
  • There are fewer fees. Some lenders will drop a few of the fees associated with refinancing in order to keep your business.
  • Your timeline is shorter. Since you’re working with a team that has worked with you before, you can usually expect a slightly speedier closing process.

When you refinance with your current lender, you don’t have to worry as much about paperwork, changing payment settings, or working with a new team. You’ll potentially save on some upfront refinancing fees, and the time to close may be shorter than the average of 45 days.

Talk to your current lender about the fees they’re willing to negotiate. If lowering some of the upfront fees keeps your business, they might be willing to waive or lower fees.

Some of these include:

Cons of Refinancing With the Same Lender

You might miss out on a few things if you don’t consider shopping around when it’s time to refinance:

  • You could forgo a lower rate. If you don’t check with other banks and lenders before refinancing, you might end up with a higher rate than you could get elsewhere.
  • You have less negotiating power. Your lender knows the exact terms of your current loan, so they might offer you a slightly reduced rate that looks good but isn’t competitive.

At the end of the day, most homeowners refinance to get a better rate, change loan terms, or cash out. You should shop around and carefully consider which lender is going to give you the best deal. Even if your current lender is willing to drop some of the fees associated with refinancing or expedite the process, you could save thousands of dollars elsewhere.

A slightly lower interest rate may not sound like much, but even a small difference can result in tens of thousands of dollars in savings throughout the life of the loan. Even if your current lender waives some of your refi fees, your business will be better elsewhere with an improved rate.

Check if You’re Still With Your Original Lender

Make sure to check whether or not your original lender is still your current servicer. Your original lender is the group that originates your loan, but that doesn’t mean they maintain it throughout the course of the loan. Home loans are often sold or transferred to another lender or servicer to oversee the regular payments and day-to-day tasks of keeping your loan.

If your loan was moved to a servicer, they likely don’t offer refinancing. When this happens, you’ll need to find another lender to refinance your loan anyway. You could go back to your original lender, but you should compare rates from multiple banks and lenders first.

How to Refinance With the Same Bank

If you decide that refinancing with your current lender is the right choice for you, follow these steps to navigate the process:

  1. Compare quotes from other lenders: Get quotes from several lenders within two weeks before committing to your current lender. You’ll reduce the impact on your credit by prequalifying with multiple lenders within the two-week timespan and have peace of mind that you’re getting the best deal with your current lender.
  2. Contact your lender: Talk to your current point of contact on your home loan or reach out to your lender’s customer support line. They will help guide you through the rest of the process.
  3. Gather the necessary documents: Your lender may have some information on hand, but don’t assume they’ll have everything. Necessary documents include proof of income, proof of homeowners insurance, credit reports, and anything else your lender asks for.
  4. Complete the application: Submit the necessary documentation and complete the refinancing application provided by your lender. Ensure that all the information is accurate and up-to-date.
  5. Get a home appraisal: Most refinancing options will require a home appraisal to assess the value of your home. Once that’s completed, the lender will begin the underwriting process to assess your financial eligibility.
  6. Complete the closing process: Pay the necessary closing costs and sign the necessary documents as directed by your lender.

Once you complete the necessary steps, your home loan will be refinanced.

Kara Johnson

Kara is a Rye, New York-based author and contributing writer for She is a graduate of Hampshire College.

Compare Rates and Save on Your Mortgage Loan

See Today's Rates