How soon can you refinance your mortgage?

Answer 1

You can refinance as soon as a lender is willing to offer you a loan. The guidelines that lenders follow change almost daily. Most banks require seasoning of at least 12 months before you can refinance a mortgage. Here is more input: * I am a Realtor, and I have researched this question for several investor clients in the past few months. From what I've found, most mortgage plans won't allow you to refi for at least 12 months. Although, some will allow it as soon as six months down the road. This is to prevent investor types from financing homes, fixing them up and refinancing them for the new, higher, value in order to pay off the initial mortgage and cover all repair expenses with the refi amount. As a "standard" live-in, residential home, you suffer from the same laws in this case. The best way to prevent paying too high an interest rate is to solicit the services of several, competing mortgage brokers up front. If you get a "quote sheet" from the first lender you speak with, you can take that quote to other lenders and they will, almost every time, offer you a lower rate. They want you to believe the rate they quoted you is the best one available, but that's hardly ever the case. You must do your research and get them into competition with one another to get the best rate you can. * I work with sub-prime banks that will do a refinance even 1 day after funding. * As a footnote this is very important most states have what's called 3 days of rescission. Your broker is supposed to explain this to you. Basically you are allowed to rescind on the loan up to 3 business days after closing. This is to protect the borrower in a case such as yours who may sign under duress. Many lenders and brokers pull what is known as a bait and switch. They promise you a low rate and then at the closing table the rate is considerably higher and many people sign because they have invested so much time or they are pressured into it. So they do have the right to rescind even after closing.