Looking to buy a new home. But it at a high interest rate. But need to move. Can handle the high interest but not forever. When can i refinance the home.
2006-08-18 14:05:53 · 12 answers · asked by marcus c 1 in Business & Finance ➔ Renting & Real Estate
Usually it's not beneficial until you've been there two years.
2006-08-18 14:10:56 · answer #1 · answered by Catspaw 6 · 0⤊ 0⤋
That depends on how much cash you put down on the home, the appreciation value. If you put down say 20% you may refinance at anytime.
Like the others are saying there is a possibility that you might have a prepayment penalty, if you refinance with the same lender they might just waive the prepay. Refinancing with another lender I doubt they will waive the prepay.
Now if you are speaking of a rate and term refinance where as you are just looking to lower your rate after a purchase, normally after about 6 months of payments. Again this will depend on the prepayment penalty so if that is your goal you should consider buying out the prepay before your loan close.
There are some loans that have loop in them where you have a time frame where you can refinance without a prepay as long as you do it with in the right time frame.
Ask your broker about such a loan and other loan products that are available to you to suit your needs.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2006-08-18 14:39:09 · answer #2 · answered by Skip 6 · 1⤊ 0⤋
You can refinance as soon and as often as you want. Three things to consider however:
1. Most lenders will only refinance based on the sales price instead of the fair market value if you've owned it for less than twelve months.
2. You will incur closing costs again, adding another $3k to $5k to your principal balance unless you pay them out of pocket.
3. You may have a pre-payment penalty on your current mortgage which will also increase your new loan amount--usually by six months' interest or more.
If you buy your new home with no pre-payment penalty on the loan (you can buy it out); can afford to pay closing costs either now or later when you refinance; and sincerely believe your credit score will increase significantly over the next few months, then go for it.
Rick Lanicek
www.primelendingonline.com
2006-08-18 14:48:39 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Interest is not high. It is still at all time lows. The average rate is 6.25% at the present time. If you can't afford that you are out of luck...it's only going higher. I've been a Realtor since 1970 and rates at that time were 7.25%. I've seen them as high as 18% in 1980. Rates will probably hit 8 to 10 percent and stay there in the next five years. As far as refinancing you can do it the next day if you like. Some loans do have a pre-payment penalty however.
2006-08-18 16:11:56 · answer #4 · answered by Michael_Pro 2 · 0⤊ 0⤋
I looked but not in earnest for a couple of years. I had my old house but wanted something bigger on more land. Selling a house is expensive and I didn't have high income so after selling my house and buying a new one I couldn't afford a really better house. I didn't want to spend 20% of the price of a house to get a house only 10% better so gave up. Then one day I was replacing the gutters on my old house when I saw a car for sale parking. I had my boyfriend go with me to see the car. The car owner was about to do an open house and the owner came out to leave for the day. My boyfriend knew him so asked him how his airplane was coming and he said he was moving to an airfield so he could have a hanger. We go in the garage to see the plane and he said he was selling the garage separate from the house on land contract. So I started thinking I could buy a garage and keep the old house, but the property line was too near the garage doors. So I looked at the house, the house was big but two story with a basement, I wanted a one level house. I really like the garage it is a 6 car garage so I bought the house with a mortgage that was as much as I could qualify for then the next day got the garage on contract. I paid more than he asked for the house and less for the garage so he could get the most cash to get his new house. That was in 1992 and I am still in the same house on over half an acre, nice enough house that is brick just not what I wanted. I will sell when I retire and buy what I wanted in the early 90s maybe 5 acres with a one level house and a huge barn and garage.
2016-03-26 21:20:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Depends on the lender you use for the refi. Some will work with you a day after closing, some will want you to be in the house 6 months.
Ask your current lender to waive the prepayment penalty. They may be willing to do this, but with a slightly higher interest rate. Even though you're already unhappy with a too-high rate, a prepayment penalty will be even more expensive.
2006-08-18 14:38:46 · answer #6 · answered by Gitchy gitchy ya ya da da 3 · 0⤊ 0⤋
Any time unless you have a stipulation of minimum term (not very likely). Also you may want to check whether paying off early, you'll owe a prepayment penalty.
Also, if you are buying a new home, you are getting new financing, so what's the problem? If the rate they offer is too high, go look somewhere else.
2006-08-18 14:09:43 · answer #7 · answered by Anonymous · 1⤊ 0⤋
It depends on it u have equity in the home (did the value go up) and do u have a prepayment penalty on the loan. If u have a prepayment penalty then u can refinance but it will cost u some $$$$
2006-08-18 14:10:48 · answer #8 · answered by y_welton 2 · 0⤊ 0⤋
Ask your lender if the loan that you have applied for has a pre-payment penalty. If it doesn't, then you should be able to refinance at any time. If there is a pre-payment penalty clause in your current mortgage, then understand that you can probably still re-fi at any time, but you'll have to pay the penalty as stated.
2006-08-18 14:13:40 · answer #9 · answered by free2b 3 · 1⤊ 0⤋
Look for the answer in the document that every body that buys a house sings and nobody reads. THE MORTGAGE DEED.
2006-08-18 18:15:18 · answer #10 · answered by Joy 1 · 0⤊ 0⤋