How long until I can refinance my mortgage. Do I have to wait 12 months?

Answer 1

Most lenders have a 12 month seasoning period, some only ask for 6 months. The problem with the lenders who do not require the full 12 months is that you can not go off a new appraised price, you have to go based on the purchase price when you bought the property. Speak to some lenders before you let them run your credit, and see what type of seasoning they look for, and maybe inquire about a second as opposed to doing a full blown re-fi. If there is equity in the home, you don't really have the same seasoning issues. Good Luck!

Answer 2

Some mortgage lenders will not let you use the appraised value of the property for 12 months. This is generally a non-conforming lender stipulation. For good credit, income and if your under 90% of appraised value, you should qualify for a conforming loan which does use the appraised value even one day after purchasing. I know I am getting a bit techical, but I wanted to let you know that some lenders do not allow you to use the appraised value and will use the purchase price for 12 months. The best thing to do is to get a few mortgage quotes and compare mortgage companies. You can do this by going to the link below.

Answer 3

You can refinance it immediately after you close if you wanted to and can get the loan. Many mortgages do have a prepayment penalty for a period of time. You'll have to pay that if you refinance before it expires but there is no bar to refinancing any time you wish.

A few years ago when rates were crashing almost daily, a number of folks refinanced 2 or 3 times in one year. I know 3 people who did just that.

Answer 4

Hello,
I am a broker and you can refinance your property at anytime. Just as long if you have equity in the property. Many banks have prepayment penalties which say for example is 3% and you borrowed 150k. The penalty would be calculated by multiplying the prepanalty amount to your loan amount(150k x 3% ='s$154,500 or $4500 prepayment penalty). Have you paid you mortgage on time! If so your property must appraise high enough to cover the above example the $154,500 and closing costs. So if the property appraises for $200k example based on 90%ltv ='s a loan amount of 180k enough to pay you loan of 150k off, your prepay 4500k off and closing cost of about 3K(estimate). It would leave you with about $22,500 in equity or cash out. I hope that I was able to answer you question. Have a blessed day!

Answer 5

No, you don't have to wait 12 months to refinance your home. You can refi a day after closing if you wish to. The question is, is it in your best interest to do so?

Have your loan officer do a net cost comparison sheet to see how long it will take you to recover from refinancing so quickly.

Really, if you NEED to refinance because of reasons not posted, you can do it....just make sure you don't have a prepayment penalty. And if you do, you will need enough equity in the home to cover that prepayment penalty. I never recommend to my clients to pay a prepayment penalty unless they absolutely NEED to refinance for other reasons. One good note on paying a prepayment penalty if you have to???.....it's tax deductible.

Answer 6

You can refinance the same day if you want.
However, mortgage companies often charge penalties for early payoffs. Check your closing documents to make sure you're over that period. If you get a better rate elsewhere, and you calculate that it will be more equitable in that it will offset the early payoff penalty, then go ahead and re-finance.

Answer 7

I had also asked the same question three times, and not gotten a proper answer

Answer 8

when it's a benefit to you!