How Soon Can I Refinance My Mortgage After Purchasing a Home?

How long you have to wait to refinance your mortgage loan after you buy a home depends on the type of refinance you want, whether you have a pre-payment penalty clause in your mortgage, and the rules of the mortgage lender you choose. In theory, you may be able to refinance immediately after you close your loan, although you would most likely not benefit from doing so.

Pre-payment penalty in Mortgage Loan

Before you refinance your mortgage, you will want to verify that there is no pre-payment penalty clause in your mortgage. These types of loans are no longer prevalent, but they do exist. Pre-payment penalties vary, and if you have one you will want to check with a lender to see if refinancing still makes sense for you.

Rate and Term Refinance vs. Cash-Out Refinance

There are different refinancing rules depending upon the type of refinance your are looking for. A rate and term refinance is one where the new loan amount is equal to the existing loan amount plus closing costs. A cash-out refinance is one that allows the borrower to tap their home equity and net cash after paying off the existing mortgage and closing costs.

To find out if you are eligible to refinance your mortgage, call us today at 1-877-868-2503 to speak with one of our licensed mortgage professionals.

To see the current mortgage rates, visit our current Mortgage Rates page.

If you have any questions that you would like to get answered by our expert mortgage brokers, please email us or call us at 1-877-868-2503.