Financing in Lynwood>Question Details

Juan, Home Buyer in 90221

how long do you have to wait to refinance for a lower interest rate after yo buy a house?

Asked by Juan, 90221 Wed Sep 23, 2009

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Marvin is correct, you can do it as soon as you would like. Make sure that your loan has no prepayment penalty (not sure if anybody offers those anymore) that would penalize you should you refinance. Also please note that if it is within 1 year, the bank would use the lower of the sales price or the new appraised value to calculate the loan to value ratio. So just because it appreciated in that time does not mean that you would be able to take cash out.
0 votes Thank Flag Link Fri Sep 25, 2009
Your free to refinance right after buying if you cash out but you can lower your payments.

Any further loan questions let me know.

Good luck.
0 votes Thank Flag Link Thu Sep 24, 2009
One month. However, you will most likely have to pay the closing costs out of pocket. Refinances done within a year go off the sales price, not the appraised value. If, however, you wait at least 1 year, we use the appraised value. Now, that may still require you to pay closing costs at closing because the value may not have gone up in one year. Better to wait at least 3 to 4 years if you want to roll everything in (it depends on the escrow - if any). Also, the best time to refinance is after the taxes/insurance (depending on which is higher per year - think FLORIDA) have been paid for the year. The next question would be: Why are you doing a loan that would require you to refinance in the future, especially that much sooner after you buy? Maybe you should reconsider buying the house before you go and spend another $4000 plus refinancing.
0 votes Thank Flag Link Thu Sep 24, 2009
Hi Juan

Some lenders require that a loan to be refianced fall outside of a time period know as the "loan seasoning period." The duration of this time period is dependent on the lender. Check with you Mortgage Broker.

Best, Steve
0 votes Thank Flag Link Wed Sep 23, 2009
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