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Is there a minimum time to wait after buying to do a refinance?

by justin300 from Norristown, Pennsylvania. Aug 2nd 2016 Reply


Jamie Ware (YourMortgageGuy)
#73 ranked lender in Pennsylvania - 43 contributions

Depends on what you're trying to do? If you purchased low and rehab the place and you want to refinance to take money out it would be 6 months. If you want to refinance because you feel you can get a better rate or shorter term then its whenever.

Aug 2nd 2016
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Not in a regular mortgage. If you have a commercial loan, there may be a prepayment penalty. You'd have to check your documents. But, it sometimes depends how long you've owned the home and if you want cash out.

Aug 2nd 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,795 contributions

Yes and no.. but it depends on the type of loan you have now and what you are attempting to do.. Lending rules require that the loan to value be based on the LOWER of the original appraised value or the newly appraised value if you are looking to refinance inside of 6 months.. . If you are looking to just lower your rate, then it's possible you can do it right away.. but all lending programs in an attempt to discourage predatory lending, will require a "Net tangible benefit", meaning there has to be a beneficial savings to you in order to do it.. With FHA, you have to wait till you have made 6 payments, but with conventional, you can do it right away.. But understand that it's possible your credit score has dropped as it would anytime you take on new debt.. so, any potential savings might be diminished if the lender has to charge you a higher rate because your score dropped.. But if you really want to know for sure, then try contacting a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Aug 3rd 2016
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