Can you refinance with the same bank or lender? Homeowner’s guide

Can you refinance with the same bank that gave you your original mortgage? The short answer is yes. It might seem like the easiest path forward — and sometimes, it is. But depending on your financial goals, it may not be the most cost-effective option.

Understanding the trade-offs between refinancing with your current lender and switching to a new one is the first step toward making the right decision. Here’s what you should know.

Understanding refinancing with your current bank or lender

Refinancing means replacing your existing mortgage with a new one, usually to get a lower interest rate, adjust your loan terms, or switch loan types. When you refinance with the same bank or lender, that means you’re working with the company that either originated or currently services your loan.

In most cases, you can refinance with your current lender if you meet their eligibility requirements. That typically means having sufficient equity in your home, being up-to-date on your monthly payments, and having a qualifying credit score.

It may sound surprising, but the lender who originated your loan may not be the same entity you’ve been making payments to. That’s because mortgage servicers sometimes transfer or sell accounts to other lenders. If you like your current lender, make sure it’s who you think it is before looking into refinancing with them.

Pros and cons of refinancing with the same bank

Refinancing with the same lender has benefits and drawbacks. Here are the biggest ones to consider:

Pros

— Familiarity: You’re already used to the processes and people involved in your lender’s organization, which means you won’t have to grapple with a new payment system or customer support process. That familiarity makes the refinancing process go more smoothly.

— Pre-existing documentation: Your lender has access to your payment history, loan documents, and other key information. Having all this on hand can reduce processing time and paperwork.

— Customer perks: Some lenders offer incentives to existing customers, such as discounted fees or lower interest rates.

If you’re already a Better Mortgage customer, refinancing could come with added savings. The Better Forever program is Better’s way of thanking returning borrowers. Once you’ve closed a loan, you’ll never pay origination fees on a future refinance or home purchase through Better — no special sign-up, no expiration, just lifetime savings built right into your loan terms.

...in as little as 3 minutes – no credit impact

Cons

— Limited comparison shopping: Sticking with your current lender could mean missing out on saving money with lower interest rates or better loan terms from competitors.

— Fewer negotiating tools: Without competing offers in hand, you have less leverage to ask your lender for lower rates or fee reductions.

— Risk of complacency: Your lender knows what you’re paying right now and may offer a slightly better deal, but without offering the lowest interest rate possible.

— Requalification: Even with the same lender, you most likely need to undergo a credit check, verify income, provide new documentation, and potentially get a new home appraisal.

— Narrower range of loan products: By refinancing with the same lender, you limit yourself to their menu of loan options, which may not align with your financial goals.

Should you refinance with your current lender?

Deciding whether to refinance with your current lender starts with knowing exactly what you want to achieve. Your goal might be to lower your interest rate, shorten your loan term, reduce your monthly payments, or something else entirely. Getting your priorities straight will help you find the best fit.

Once you’ve clarified exactly what you want out of your refinance, evaluate your experience with your current lender. If you’ve had consistently strong service, value the convenience, and like their platform, it might be worth asking if they can match or beat competitors’ offers. Lenders want to keep your business, and they may be willing to be flexible to do it — especially if you’re an existing customer in good standing.

That said, refinancing is an important financial transaction that could impact your finances for years or even decades to come. Limiting yourself to a single lender without comparison shopping could leave significant savings on the table. Taking the time to gather quotes and review different loan terms gives you a clearer picture of what’s possible and what to expect from your current lender.

How to refinance with your current lender or bank

Refinancing with your current lender follows many of the same steps as refinancing with a new one. If you’ve decided not to change lenders, here’s what you can expect the process to look like:

— Apply: Submit a loan application with up-to-date financial documentation. This typically includes recent pay stubs, W-2s, bank statements, tax returns, and proof of homeowner’s insurance.

— Go over your loan estimate: This document outlines your proposed new interest rate, monthly payment, closing costs, and other key details. Review carefully to make sure the numbers align with your goals.

— Get appraised: Your lender may require a new home appraisal to determine its current market value. This helps them assess risk and finalize loan terms.

— Close the deal: Once underwriting approves the refinance, you move on to closing. This is when you’ll sign final documents and pay any remaining fees or prepaid costs before the new loan goes into effect.

With Better, you can see your custom rate without having to complete a full application and upload documents. Just answer a few questions and Better can tell you what you’re pre-approved for in as little as 3 minutes, without impacting your credit.

...in as little as 3 minutes – no credit impact

Why it’s crucial to shop around before refinancing

Even if you’re leaning toward staying with your current lender, comparing offers from several lenders gives you a clear sense of market rates, fees, and terms.

If you’re refinancing during a period of interest rate volatility, the differences between offers could be significant. Even a small difference in interest rates could lead to huge savings (or costs) over time.

Keep in mind that when you gather quotes, your credit score takes a small (but temporary) hit. However, credit bureaus treat multiple credit checks for the same loan type as one inquiry when they happen in a short time frame. If you compile your quotes within about 14–45 days (depending on the credit bureau), you can minimize the impact on your credit score.

Frequently asked questions

Can I refinance with a different lender?

Yes — there are no restrictions as to which lender you can use for a refinance. Just as you can refinance with the same lender, you can refinance with a different lender, too. Switching lenders is a common financial move when borrowers find better loan terms elsewhere.

Is it better to refinance with my current lender or a new one?

That depends. If your current lender offers competitive terms, great service, and reasonable fees, it can be a smart and convenient choice. But if you find lower interest rates, more flexible loan terms, or reduced costs with another lender, making the switch might be worth it.

How much are the closing costs if I refinance with the same lender?

As with any lender, you can expect closing costs to be 2–5% of your new loan amount. But some lenders may reduce or waive fees like prepayment penalties for current customers — and there’s no harm in asking.

Do lenders offer lower refinance rates for existing customers?

Sometimes. While a strong relationship with your lender can help, there’s no guarantee they’ll offer you the lowest interest rate. That’s why it pays to get outside quotes, even if you plan to refinance with the same lender.

What documents are required to refinance with the same bank?

To prepare for a refinance, you typically need to resubmit many of the same documents required for your original loan, including:

— Pay stubs

— W-2s or other tax returns

— Bank statements

— Insurance information

— A new home appraisal

— Credit and employment verification

Better refinancing starts here

Refinancing with your current lender can be a smart option, especially if you’re happy with their service and they’re willing to offer competitive terms. But convenience shouldn’t cost you extra cash. Exploring offers from other lenders makes sure you get the lowest interest rate and loan terms that align with your financial goals.

Refinancing should save you money, not cost you time. Better cuts out the usual hassle with an online process built for speed, clarity, and control. With no hidden fees, competitive rates, and a process that takes just minutes to start, it’s refinancing without the runaround.

Check your refinance options with Better in just 3 minutes.

...in as little as 3 minutes – no credit impact