can i do this or is it just refinancing?

[dooo42]

Can i go to my local bank that i used for many years and apply for a home loan to pay off my current home loan and in the process get the lower interest rate? i'm not asking to refi just to take over my loan...or will they keep the same interest rate?

[MC1550]

In today's world, you can go and ask them to recast your loan at a lower rate and hopefully without any costs to you. My credit union is now offering a "streamline" home equity loan to pay off a mortgage at a much reduced interest rate. There are some qualifiers but it is a no-cost transaction. ...3.5% over ten years or 3.75% at 15 years. I am at 4.5% right now and plan on making a trip to the CU for a possible re-do. There are options out there and you only have to ask. Happy Trails.

[Gotadimple]

Quote:

Originally Posted by dooo42 Can i go to my local bank that i used for many years and apply for a home loan to pay off my current home loan and in the process get the lower interest rate? i'm not asking to refi just to take over my loan...or will they keep the same interest rate?

You are asking for a refinance with no cash out. You don't have to refinance with your existing bank.

That means you want to borrow what you owe Bank A from Old Bank. Old Bank will quote you a rate that is current (and hopefully much lower than your current mortgage).

At closing, Old Bank will pay off Bank A and your new mortgage payments will begin with Old Bank.

Do your research on rates and fees.
-- Rita

[pb4uski]

Quote:

Originally Posted by dooo42 Can i go to my local bank that i used for many years and apply for a home loan to pay off my current home loan and in the process get the lower interest rate? i'm not asking to refi just to take over my loan...or will they keep the same interest rate?

What you describe is a refi - you are taking out a mortgage loan with your local bank and using the proceeds of that loan to pay out your existing mortgage.