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| *Ostroff, Fair and Company>>>Renting & Real Estate |
I have owned a house for a year. When can i Refi? |
I have owned a house for a year. When can i Refi? You can generally refinance at any time, but it's not prudent to do so. The charges at closing and at refi will probably negate any immediate savings from a better interest rate that's not at least 1.5 -2.0 percent lower. However, I doubt you would find a mortgage company that will refinance you if you haven't been in the house for at least 2 years. The short answer is: whenever you can find someone willing to make a loan to you on the house. Now, why do you want to refinance? Is your interest rate too high or other terms not acceptable? Sure, start asking around to other lenders now and see what the loan market is demanding. At least you'll get a feel for what it will take in your local. That all depends on if you have a prepay or not. You could refi the next day after closing if you want to. Your appraisal has to either come up to enough to be able to cover all the fees that would be associated or you have to have enough money in your pocket/bank account to cover these. There are usually closing costs and prepay penalties if you have a prepay on your current loan. I would suggest calling the company that did your loan when you purchased your home. You may have just a 1 year prepay which means you could refi now without any penalties. Hope this helps. Some people say don't refi unless you are getting a certain lower interest rate. Not always is that the case. If you are looking to just save some money monthly, you can lower your monthly payments by consolidating everything into one payment. It would be best to talk with someone at a mortgage company. I can refer you to a good company if you would like. Email me at charJ9306@uwc.edu. Most lenders require a "seasoning" period before a loan can be refinanced. This can be 4 months to a year, depending on the lender. I have two dozen lenders that would do a refi after a year of ownership. BUT............ Bear in mind that there are costs of doing a refi, so you need to make sure the costs are justified. If the purpose of the refi is to lower payments, then the difference in the payments is what you save. For example, assume your new monthly payment is $100 per month less on the new loan. If the cost to do the refi is $3,500, this means it will take 35 months to cover the cost of the refi. If you are not going to stay in the house for more than 3 years, it probably doesn't make sense. I would be happy to discuss your specific situation. ken@thesynergycorp.com My bank doesnt require any seasoning on the home, as soon as you close you can refi the next day. That being said what is your goal of refinancing? If you want to consolidate the mortgages that is easy I would simply need to see if the value is there to do that. |
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