How soon can you refinance your mortgage after closing?
How soon can you refinance a mortgage? It depends on the type of mortgage, the type of refinance and the lender’s requirements. Some conventional loans allow the borrower to refinance any time, while some government-backed loans such as USDA will require a full year’s worth of payments before they can refinance.
All things considered, if you are thinking of refinancing your mortgage loan to get a better rate, once rates begin to fall, here is how long you will need to wait before you can do so.
Conventional loans can be refinanced at any time, however, lenders do vary, and some may require a seasoning period of six months. You may be able to circumvent this by simply trying another lender.
FHA Loan - To refinance your FHA loan for a lower rate you are required to make at least seven months’ mortgage payments.
VA Loan - To refinance your VA loan, known as a VA interest rate reduction refinance loan (IRRRL) your lender will require you to wait seven months or have made six mortgage payments.
USDA loan - refinance requirement include on time payments for a minimum of 12 months.
Remember, there is a cost associated with refinancing your mortgage loan, so you will need to make sure that it make financial sense. As always, thank you for stopping by. Until next time…Diana
Image Created by Diana for First Home Houston
