Is There A Refinance Waiting Period?

If you recently purchased a home or have had a home for some time and are interested in refinancing, then it is in your best interest to see if there are any waiting periods or guidelines to abide by.  So if you are sitting there wondering what the Refinance Waiting Period is, this article has the answers for you.  In a basic sense, a home owner who just closed on their home cannot just turn around and get their home refinanced immediately or shortly after closing.  All refinance mortgage loans need to show a net tangible benefit to the loan borrower.  Yes, there is a Refinance Waiting Period and we will get into that in a little bit, but first it is good to know reasons for refinancing in the first place.

1. You can receive a lower interest rate than the one you currently have.  Doing this can lower your monthly mortgage payments which is also called a Rate and Term refinance.
2. If you are interested in changing the term of your mortgage from a 30 year fixed rate mortgage to a 15 year fixed rate mortgage in an effort to pay off your balance earlier, this is an adequate reason to refinance.  15 year fixed rate mortgages will almost always have a lower interest rate than the traditional 30 year fixed rate mortgages.  On the flip side, you can also refinance from a 15 year fixed rate to a 30 year fixed rate to lower your monthly payment if you cannot afford the 15 year fixed rate anymore.
3. If you currently have an FHA Loan and are looking to remove the Mortgage Insurance Premium (MIP), then refinancing into a conventional loan is your best bet.
4. If you originally had a co-borrower on your loan and you can now get approved on your own, you can refinance for this reason.
5. Cash-out refinance can be done since you are using equity in your home to obtain funds for projects or other reasons.  If you are looking for a Conventional Loan refinance, you can cash-out up to 80% LTV (loan to value).  For FHA Loans, you are looking at an 85% LTV for a cash-out refinance.

Refinance Waiting Period Explained

If you have an FHA Loan and are looking for an FHA rate and term refinance mortgage than the Refinance Waiting Period is 6 months from the date your mortgage closed.  If you currently have a Conventional Loan and are looking for a rate and term or cash-out refinance then the Refinance Waiting Period is 6 months for this loan program as well.  As you can see for all loan programs and reasons for refinancing, the Refinance Waiting Period is going to be 6 months.

Refinance Waiting Period: Find A Professional

If you are interested in refinancing your home with the goal of reducing your payment or taking some cash out, then you need to give me a call and we can go over your options for doing so.  Feel free to call me anytime at 888-900-1020, email at contact@loanconsultants.org, or visit www.loanconsultants.org and apply today!  Don’t wait and get your payment lower or some cash ASAP!