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Refinancing a mortgage with same bank

Lars
2 months ago

My brother and I have decided that we want to convert our 15 year mortgage to a 30 year mortgage so that monthly payments will be lower. I got this idea because I received a flyer in the mail saying that I could reduce our monthly payment by $1200 and also qualify for a cash out of $43,000. This would be for our house in Los Angeles, which we refinanced six years ago, thinking it would be better to pay it off and own it outright by 2030. Then we bought a house in Cathedral City, mostly with money from real estate that we sold in Texas, and so it is already paid for, but is worth a fraction of what the house in L.A. is worth, even though they are essentially the same size.

We went to my brother's credit union (First Entertainment) where he has his account and where we got the refinancing in 2015, but a woman there told us that they do not refinance their own loans and that we will have to go to a different bank. Is this standard procedure? We did not say that we wanted to convert from 15 to 30 year, and I wonder if this would have made a difference.

I am somewhat leery of ads that are sent to me, and so I am wondering what would be the best way to shop for refinancing. My account is at U.S. Bank, and so I could go there, but I'm not sure that they would have competitive interest rates.

How do you find the best interest rate for refinancing? We've done almost no shopping around for home loans, since Kevin's credit union gave us a very good rate. When we first bought the house in L.A., we used a mortgage company referred to us by our real estate agent, but I do not want to do that again.

We plan to sell the house in 2031 when Kevin retires, and then we will just move permanently to the house in Cathedral City, or sell that house as well and buy something larger in Palm Springs (if we can afford it then) or else perhaps a larger house in Cathedral City, which we like as well as we like Palm Springs.

The main question is how do we find the best interest rate? What information do I need to have when I go shopping for refinancing? Both houses are both our names. We both also have frozen our credit reports, and I assume that we will need to unfreeze those again, temporarily.

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