I want to refinance my house but?

Question

I want to refinance my house but the bank said I have to wait 3 years before I could refinance. We bought the house a year ago already, but would like to refinance to fix some things around the house. What is your suggestion? We bought the house for $169,000 and had it appraised a couple of months ago for $235,000. All the homes in the area are selling from $225,000 and over.

What lenders should I consider to to this?

Answer 1

Sounds like there is a prepayment penalty on your home. This means you can't refinance in a certain amount of years unless you pay a prepay penalty, which is usually 80% of 6 months interest.

It's a hefty charge, and probably not worth paying if you just want to make some improvements to your home.

Review your note and loan docs and look for the prepayment penalty rider or page. It should detail how long your prepay is, and whether it is hard or soft. Hard means you can't sell or refi, soft means you can sell, but can't refi.

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Answer 2

Since you have the equity in the house, the only reason lenders may suggest you to refinance after three years would be a case of "PRE-PAYMENT PENALTY".

However, if you really need the money, go ahead and refinance, you will be able to even you don't have best of credits.

I'm a loan officer myself.
If you wish I can suggest you some good lenders for your situation, my email: [e-mail]

Good Luck!

Answer 3

I assume you have to wait 3 years because of a pre-payment penalty?

Pull out your closing papers from your last closing. Find the Note, and any "Prepayment Penalty Rider" and get them available.

Next, call a couple local brokers or banks and find someone to review the penalty with you. See how much it really is. Then, make sure that any refinance offer takes into account the cost of the penalty. If it all still makes sense, go for it. If not, you'll know for sure, having seen it on paper.

You could just get an equity loan, and avoid the penalty, if that's a major factor.

Answer 4

Do you mean you rented a house FROM this family? If you were not there when the appraiser came by, how would you possibly get in trouble? If they lied to get refinanced, the problem is theirs, not yours. Your question is unclear. What is it you actually want to ask us? EDIT: Yes, it could possibly be illegal for them to refinance under those circumstances. However, this doesn't seem to have anything to do with you at all. It's between them and their bank and the IRS. You're not a party to it.

Answer 5

Even at a $225,000 value, you should be able to refinance. You should be able to get 80% of your home and that's about $10,000 cash. Anything above that you'll be paying mortgage insurance. I would try another lender. Good Luck

Answer 6

Anyone. The reason your bank said you had to wait 3 years is probably due to you having a pre-payment penalty on your loan (I can't think of any other reason why they would say you have to wait.) Anyone can do this refi for you, as long as you have decent credit so the rate makes sense for you.

Answer 7

Shop around for another lender. The current lender can't stop you from re-financing even if they're not willing to do it themselves. But check your mortgage for a pre-payment penalty first. You'll need to consider how much that will affect your overall costs.

Answer 8

Try getting a different loan - HELOC or simple home equity loan. There is more than one avenue for borrowing money on your home.

Answer 9

you can get the general property value of your house in relation to your area but going to http://www.doiop.com/realestate and inputting your zip code.

Answer 10

change your company ,but you should think twice before you do alot of people can't payoff their refinance loan and in up selling the house .please think about.