How Soon Can I Refinance After Buying a Home?

Two separate limits

1. 1.Program seasoning rules, which set a minimum number of payments or months before a specific refinance type is allowed.
2. 2.Economic sense, which asks whether the savings clear the cost of doing it again.

What tends to require waiting

• Cash out transactions, which commonly require ownership seasoning.
• FHA and VA streamline refinances, which typically require a set number of payments and a minimum time since the first payment due date.
• Loans where the payoff would trigger an early payoff penalty back to the originator, which can affect pricing offered to you.

If rates dropped right after you closed

Ask for a no cost or low cost structure. Paying a second full set of costs within a year of purchase rarely works out, but a credit driven refinance at a modestly higher rate than the best available can still capture most of the benefit.

If you bought recently and rates moved, send me your closing disclosure. I will tell you honestly whether it is too early.

Educational purposes only. Refinance and VA loan guidelines vary by program, borrower circumstances, property type, entitlement status, documentation and lender requirements. All financing is subject to application, verification, applicable program guidelines and underwriting approval. Not a commitment to lend. Manny Oloyede | Mortgage Broker | NMLS 1824463 | Ultimate Mortgage Brokers LLC. Equal Housing Opportunity.