Minneapolis, MN: Shopping for a home loan is confusing. No matter what we’re looking for — from cars to refrigerators’ — there’s a built-in element of confusion. Why? Lack of knowledge. An unfortunate rule of thumb is that the less we know about something we need to buy, the more we can expect to pay for it.

Your current lender sounds like a logical choice to refinance. They take advantage of you because they know that many people incorrectly assume because they have your current loan, that somehow they can do it quicker, cheaper, and faster.

You couldn’t be more wrong.

There is no short cut to the process when you refinance with your current lender. They still need to do everything over just like anyone else. Get an appraisal (in most cases), and collect all the same supporting documents as anyone else, like pay stubs, W2’s;s, etc.  The file still needs to go through underwriting, there are still closing costs, title companies, and everything else.  Interest rates are based on the mortgage backed securities bond market, and they can’t magically give you a better deal because they have your loan today.

As a matter of fact, because most people only call the existing lender, you almost never get the BEST interest rates – simply because they don’t have to. You just assumed they were good, never shopped, and they took advantage of your laziness.

Your current lender adds to this myth because the person on the phone usually says tell you thing’s like you’ll get a Preferred Customer, or Existing Customer Discount. Sounds great, but those statements are meaningless hyperbole.

Pro Tip: Call your local non-bank lender like us here at Cambria Mortgage, or the broker who gave you the original loan if you want the best deal. Click here to Apply with Cambria Mortgage, the Joe Metzler Team.