NLIC.org

Donna Said:

Refinancing. Will I pay less in closing cost if I use my current mortgage lender/bank?

We Answered:

This can be true. To make sure you are getting the best total deal (lowest interest rate and lowest closing costs) be sure to shop around by talking with your current mortgage lender and bank, along with talking to other lenders. You can quickly find other lenders who are offering good deals by looking at the consumer-friendly website BankRate.com (under "Mortgages," go to "Compare Local Mortgage Rates" and enter a few quick details).


When you are shopping around, ask about closing costs and get a "Good Faith Estimate" of closing costs. This document is a pain to figure out, but if you get more than one you can compare the fees.


I did this - shopped around, and ended up refinancing with my current lender because they offered the best deal, including lowest closing costs.

George Said:

why would a mortgage lender ask for a decline notice from another lender? What exactly are they looking for?

We Answered:

They want to be sure that you don't get two mortgages on the same piece of property. They just want documentation that the other loan will not be going through.