Financing in 94585>Question Details

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How soon after closing on a new home loan can you refinance?

Asked by Voices Member, Sat Jul 30, 2011

Is there a time limit between purchase and refinancing? My home loan closed early June and Im now interested in refinancing to a ARM loan.

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You can refinance the day after you close your escrow.
The original appraisal must be utilized. If the borrower is trying to take advantage of the new value, he must wait for six months to pass.
If he paid cash and wants to pull his cash out? This is termed delayed financing.
Depending on loan amount, you can pull up to 80% of the original investment out of the property.
You will be required to provide a new appraisal, but the purchase price must be utilized for 6 months.
0 votes Thank Flag Link Mon Apr 21, 2014
Once you close need to wait 6 months prior to refinancing
0 votes Thank Flag Link Thu Apr 17, 2014
There is a site that will help you determine if you can qualify for a refinance after short sale, foreclosure, or filing bankruptcy. Check out http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sun Aug 11, 2013
There is no time limit on that. You just have to have a valid benefit, you would have to convince me it was in your best interest.

The problem is that if the property has gone up in value we may not give you credit for that. Also if it has gone down in value we probably will count it against you. I know it is not fair.
0 votes Thank Flag Link Tue May 7, 2013
As addressed below by Mr. Denny , you are not restricted regarding timeline when considering refinancing your mortgage as before. If you wish to change programs and take advantage of the low ARM rates you are free to do so. I would suggest contacting a local Mortgage Professional in order to discuss your options. There are several good ones on this site.


Best of Luck!
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Sun Jul 31, 2011
Lance, prepay penalties are pretty much a thing of the past and are non-existent on Conventional & Government loans. A good lender can help keep you informed of these types of changes as they happen.
0 votes Thank Flag Link Sun Jul 31, 2011
I don't know why agents keep coming here and posting lending guidelines when they are unlicensed to do so. I will repeat this again. You do not need 20% or 25% equity to refinance, in fact, depending on your current loan type, you may not need any equity or could possibly be in a negative equity situation.

The CA DRE does not allow unlicensed persons to engage in RE activities nor do they allow unlicensed persons to engaged in mortgage loan activity. I strongly suggest that unless you are properly licensed, that you refrain from giving advice about the subject; especially when the advice is blatantly incorrect.
0 votes Thank Flag Link Sun Jul 31, 2011
I don't know of any loans that preclude you from refinancing for any reason, but typically there are pre-payment clauses in the note that can have some fairly hefty fees attached. The prepayment periods also vary greatly - check your note docs.

Also, as others have pointed out you need a certain amount of equity in order to refi, and most of the ones we have seen require 25% equity. Check with new lender(s) on that and make your decision from there.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Sun Jul 31, 2011
You could refinance the day after you close if you wanted to unless it's a high balance transaction (above 417K) and then 6 months in required. You also do not need 20% equity in your home to refinance. This all assumes that you used traditional financing. If you used a portfolio lender or private financing, you would need to check your note to see if there are any restrictions, pre-payment penalties or other provisions.
Please let me know if you need assistance.
0 votes Thank Flag Link Sun Jul 31, 2011
Hi Richard - As long as it is a rate-term refinance, with no cash out, you should be able to refinance now with a new lender. Keep in mind however that the original lender loses out if you refinance within 6 months of the purchase, and that usually means the loan officer who helped you will lose their commission. Thus, your original lender will typically not do your refi within the first 6 months.

Feel free to contact me for more information.

Marty Stern
Magnifund Group
mstern@magnifundgroup.com
0 votes Thank Flag Link Sat Jul 30, 2011
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