How Soon Can I Refinance My Mortgage After Purchasing a Home?
Just because you can refinance soon after closing doesn’t necessarily mean it’s right for you. How long you should wait depends on three factors:
Your refinancing goals
There are plenty of reasons to refinance, and what yours is can affect how you proceed.
Lowering your monthly payments is always popular, especially with interest rates as low as they are now. However, most lenders won’t refinance a mortgage they issued in the last 120-180 days, so you may have to shop for a new lender.
Switching loan types is helpful when your situation changes. If you have a conventional loan, then a rate and term refinance should give you the customization you need.
Paying off your mortgage faster via a cash-in refinance is a smart way to build equity while potentially securing a lower rate. If you have an FHA loan, though, you must wait at
least 6 months before refinancing with the FHA streamline program.
Whether or not your mortgage has a pre-payment penalty clause
Double-check that there’s no pre-payment penalty clause in your mortgage. These aren’t common anymore, but they do exist. If you have one, you should consult a lender to make sure refinancing is still a smart move.
The rules of the lender you choose
Each lender has different rules that dictate how quickly you can refinance, not to mention what qualification requirements you need to meet in order to proceed. Our mortgage experts can help you uncover some of these rules.
Speak to a Mortgage Expert
Still have questions? Call 203-707-5693 for a free no-obligation consultation with one of our mortgage experts.
How much can you save by refinancing? Fill out the form or call 203-707-5693 to speak with a home loan expert.Source: www.totalmortgage.com