when you, you replace it with a new one Sometimes, it allows you to get one Or may come with it which you can use to cover home repairs or any other expenses you may face.
Not for everyone though. In fact, there are certain waiting periods that loan programs impose before you can proceed. If you think refinancing your home loan makes sense, start by answering a few simple questions to see what rate you qualify for.
How soon can you refinance your mortgage?
You are considering a? Here’s how quickly you can do it for each type of home loan.
if you wantFor a new one with a different rate or tenure, there is no waiting period and you can do it as soon as you want. Just understand: it may cost you.
Some lenders charge prepayment penalties if you pay off your loan too soon after taking it out. These typically cost 1 to 2% of the outstanding loan amount, so on a $300,000 loan, you could owe up to $6,000.
, which allows you to take out a new, larger balance loan and keep the difference in cash, is a different story. With conventional loans, you need to be on your first loan for at least six months before cash-out refinancing is an option.
You can determine your mortgage refinance eligibility online now or use the table below to crunch the numbers.
, or loans guaranteed by the Department of Veterans Affairs, come with a 210-day waiting period — meaning you can’t refinance until 210 days after your first mortgage payment is due. To qualify you must make at least six monthly mortgage payments and be current on your loan (ie, not behind on payments).
The waiting period for an FHA refinance depends on the type of refinance you are seeking. With a standard rate-and-term refinance, you have to wait at least 210 days from the due date of your original loan.
If you want to take cash out with your refinance, you must have lived in the home for at least a year and made on-time mortgage payments for the past 12 months.
USDA loans have some of the longest waiting periods. With these loans, you must have had your mortgage for at least one full year beforehand. This waiting period applies to all USDA loans regardless of type.
Remember that lenders also have requirements. The waiting times mentioned above are for loan programs only. The lenders that issue them may have additional requirements you must meet before you qualify for one.
if youWith the same mortgage lender, you can usually expect long waiting periods and potential prepayment penalties. For this reason, it’s always important to shop around before you refinance. Mortgage refinancing rates, terms, requirements and waiting periods can vary quite a bit from one mortgage company to the next.
Check your eligibility with Quick Loans now or use the table below to start shopping for lenders.