Forgotten Your Password?

Need to Register?

Question Icon

Can I refinance right after purchasing?

I am purchasing a home with 10% down. My current home will be sold in 60 days.. can I refinance that quickly since I'll have a decent amount of cash to put down? I'd like to lower my monthly payment.. by jerseygal36546 from Bloomingdale, New Jersey. Apr 24th 2017 Reply


Yes you can refinance that quickly. I would be happy to help you. Tony CroftMovement MortgageC - 201-424-9662www.tonycroft.com

Apr 24th 2017
1
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,802 contributions

Yes. .but you would get a better deal if you use a different lender than your original mortgage... Lenders are subject to "recapture" clauses which means that they will be charged back a percentage of what they earned on your first loan if the loan get's paid off inside of 6 months.. if you go back to the original lender, he will raise if rate/fee's to offset the funds he's going to be charged back.. You will be subject to paying for a new appraisal as well as closing costs, but it can be done.. You might want to contact your existing lender and ask them if you can do a "Re-cast" of your existing loan.. This is where they allow you to pay down your loan, and they will lower your payment just as if you refinanced.. for this, the only charge is a processing fee.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 24th 2017
1
0
Larry Gray (lgray_312_247)
#560 ranked lender in California - 1,127 contributions

As William Acres commented, your lender could possibly do a Re-cast of the existing loan. It seems once your loan is completed you will have just paid all the closing costs most likely to include impounds of property taxes and insurance.You would either have lender paid mortgage insurance, with 10% down or be paying for mortgage insurance. I(f it is lender paid mortgage insurance, it is understandable that you likely have a higher rate. Either way I can understand whyit would be best for you as well as your lender if you can get a recast of the loan.

Apr 24th 2017
0
0
Bert Carpenter (BertCarpenter)
#39 ranked lender in Arizona - 1,815 contributions

Before you refinance, reach out to the lender that is servicing your loan. Explain that you are coming into a sum of money and want to apply a lump sum and have them re-cast your loan to reduce your payments. Most lenders will allow for the recasting with a modest fee of $150 or so. Your existing loan may have a more favorable rate when compared to what you can get today. Another option would be the refinance, which will have other more significant costs. You will have new title fees and a new appraisal is also likely to be a requirement. Compare the cost differential between the two options and select the one that gives you the most benefit. Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in Arizona (AZLO0911876 / AZBK0902429), Washington (WALO40586 / WACL3087) and California (CADOC40586 / CAFLL6036566). We are licensed by the CA-DBO under the CFLL and CRMLA. Loans made or arranged pursuant to CFLL or CRMLA license. ~ www.LoansA2z.com ~ 888-889-9950

Apr 24th 2017
0
0
John Burke (jburke)
#1 ranked lender in Texas - 183 contributions

Hi Jerseygal36546,I would make sure you run some numbers/scenarios before you jump into a refi. Here's why. 1) There's now way of knowing what rates are going to do, they could go up which effects your overall benefit for refinancing. 2) You're going to pay closing costs again when you refinance so you want to make sure it's worth it. One more thing to think about. Once to put that money into your mortgage/home it will be almost impossible to get it back if you need it. I would seriously look at your break even point & consider putting that money into some other investment that allows you access to YOUR money when you need it. Here is an example of a break even calculation. Let's say your loan amount is $300,000 & your principle & interest payment is $1,432.25. Now let's say you put $60,000 into the loan. That would drop your P&I payment to $1,145.80. That's a difference of $286.45 per month. Now divide your cost ($60,000) by the savings ($286.45) to get your beak even point which is 209 months! That means it will take you 209 months of saving $286.45 per month to recoup the $60,000 you put in. | Please feel free to contact me for more information or help. | John Burke | Senior Mortgage Banker | Great Plains National Bank http://www.valoansdoneright.com | (877)228-9069 | Lending in ALL 50 states

Apr 26th 2017
0
0
Subscribe to our news feed.