Hello clg7067,

Much less red tape and paperwork to refinance with your current lender.

However, it would probably be a good idea to ask for quotes from other potential lenders, as you may find a better deal elsewhere.

And even if there are some more ancillary costs currently, over a period of several years, a lower rate of interest elsewhere would more than pay for some extra fees.

Your quotes should include all of the required fees, costs, searches, inspections, etc.

If you indicate to your current lender that you are shopping around, that may sharpen them up a bit - if they dropped their interest rate offer by 0.25%, that would be an appreciable improvement, justifying your investing some time, effort and emotional turmoil into the project.

Sometimes mortgage brokers can be a big help, but one should choose one with the usual care.

I hope that you find a situation that pleases you - not only now, but after three years, as well.

ole joyful

When I had my home built I had a construction loan. Once the house was done, the same lender rewrote the loan into a mortgage loan. There were some expenses to have that done(maybe bought a point or some other things). Once I had done that, I had what was called an indemnifying loan, which could be rewritten whenever the interested dropped (it was a fixed rate loan), and there was no charge. I had them write it up as 2 loans. One was for a term of ten (maybe 15...its been a while) years, and the other was for 5 years. The 5 year loan had the better interest rate, so I had it written so that I would be making the biggest payment I could comfortably and reasonably afford. I think I had them rewritten once or twice after that due to the interest dropping, though I never had my payment lowered. It just caused me to have them both payed off earlier.

You might ask about information on an indemnifying loan, if you have refinance with the current lender.

Sue