• Mortgage holders do not need to refinance through their original banks.home sweet home image by David Dorner from Fotolia.com
  
  

You Don't Have To

• As a mortgage holder seeking to refinance your current home loan, you are under no legal obligation to refinance with your existing lender. Rather, you will want to seek out offers from a number of lenders and then select the deal with the most favorable terms.
  
  

You Might Want To

• Although you are not under any legal obligation to refinance through your original lender, your relationship with your bank may translate into a better offer. Having done business with you, your lender may have greater confidence in your ability to pay back the loan, allowing them to offer you terms that are more generous.
  
  

Bottom Line

• Borrowers do not have to refinance through their original banks. However, there may be reasons other than an existing relationship to continue doing business with them. According to Bills.com, a new lender may require you to fulfill expensive and time-consuming new requirements, such as conducting a new property appraisal.