Refinancing Through National and Local Banks
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Should I refinance through a local bank?
When you stop to compare mortgage refinance rates, make sure you don't limit your comparison to just those banks that are nationally recognized. Your local banks may have mortgage refinance rates that meet or beat those of a large national bank and could even have other perks that make the refinance more worthwhile.
Perks of Local Banks
- Account bundling: Often, if you bundle multiple accounts and a mortgage with a small, local bank, you can take advantage of special free checking accounts, easy balance transfers, and lower rates.
- The interest helps your community: Small, local banks do not distribute their earnings to shareholders and employees across the nation. Instead, the earnings generally stay in your community and are invested in the businesses there.
- Lower fees: Many small community banks are more amenable to negotiating fees with borrowers. You might be able to negotiate a lower title fee, closing costs, lock-in fee, and other expenses.
- Faster approval: Because smaller financial institutions are more familiar with local purchasers and homes, they may need to do less research to underwrite your loan and could come back with a faster approval.
So be sure to factor all these points into your comparison of mortgage refinance rates.