How Soon Can You Refinance a Home After Buying?
How soon after buying a home can I refinance my mortgage loan? This is one of the most common question we are getting from homeowners right now, and for a good reason.
When mortgage rates dropped to record lows over the last few months, many folks were rushing to refinance their homes at a lower rate. A large percentage of those people had recently purchased their homes, and they were the ones asking the question: How soon can I refinance my mortgage after buying a home?
How Soon You Can Refinance Depends on the Lender
The first thing you need to realize is this. Everything that follows is a generalization, and not by any means set in stone. Each lender has its own guidelines, as far as how soon you can refinance after buying. So when in doubt, ask the lender.
With that preface out of the way, let’s talk numbers. There is usually a 12-month rule of thumb that comes into play. In other words, most lenders won’t refinance your mortgage if you’ve had it for less than a year. So if you purchased your home less than a year ago, it’s going to be hard to find a refi lender. Most will tell you it’s too soon to refinance the loan. Once you get past the one-year mark, it will vary from one lender to another.
I researched this question thoroughly before posting this article. As you can imagine, every “expert” had something different to say about this subject. The one thing they all agreed on (or most of them anyway) is the 12-month generalization mentioned above.
Another thing to consider is closing costs. If you’ve just purchased a home recently, you probably paid thousands of dollars in closing costs. You will pay them again when you refinance the mortgage. That’s a lot of expense in a short time frame.
This article answers the question: How soon can I refinance my mortgage loan? As much as that question can be answered, anyway. If you would like to find out if refinancing is an option for you, use the links provided at the top and bottom of this blog. You can also get lender quotes through our main website.
Frequently Asked Questions | admin | 
June 30, 2009 8:50 am
