How Soon Can I Refinance My House?
- Joe Thomas
Certain mortgages can be refinanced quickly, but you must normally wait at least six months before applying for a cash-out refinance, and other mortgages require waiting as long as two years. Time constraints are contingent upon the underlying mortgage’s characteristics and the type of refinancing sought.
Does refinancing affect credit negatively?
In conclusion, refinancing will negatively affect your credit score initially, but may be beneficial in the long term. Refinancing can drastically reduce your debt and/or your monthly payment, and both are desirable to lenders. Typically, your score will drop a few points, but it will recover within a few months.
Refinancing a loan is the process of obtaining a new loan to pay off an existing loan or loans. Typically, borrowers refinance in order to obtain cheaper interest rates or to cut their monthly payments in some other way. Refinancing can also be utilized to get a loan with a longer duration and lower monthly payments for debtors struggling to repay their loans.
How many times may a home be refinanced?
There is no restriction on the number of times you may refinance a mortgage, however a lender may impose a waiting period between closing on a loan and refinancing to a new loan.
Why would you consider refinancing your home?
Refinancing enables you to modify the terms of your mortgage to get a lower monthly payment, change your loan terms, consolidate debt, or even withdraw cash from your home’s equity to pay for expenses or home improvements. Let’s examine in further detail some of the reasons why you might desire to refinance.