How soon can you refinance a mortgage

When you think of how soon can you refinance a mortgage. Consider asking yourself questions like is it going to help you save money? Is it helping you decrease your monthly payments? Let me tell you, refinancing lets you swap one mortgage loan for another, although at a lower rate. And your associated savings could be substantial. How quickly you can refinance a mortgage depends on the type of home loan you have and refinance mortgage you are getting.

So, let’s look at everything you must know when you plan to refinance your mortgage. 

Mortgage Refinance is the best way to get rates for your loan. 

What happens when you refinance a mortgage? 

A refinancing mortgage is when a homeowner gets a new mortgage loan to replace their current loan. There are many reasons you may opt to refinance. To lower the interest rate and reduce the mortgage payments, often saving thousands in mortgage interest.

The first step when you plan to refinance is to speak to your lender. Most lenders will provide you with some basic information about your proposed refinance before you even submit extensive documentation or undergo a credit check. And when you are approved to move further -the lender will review your income, credit history, and DTI ratio, as well as ascertain the LTV ratio on your home to see how much equity you possess.

You may also refinance into a new loan type or a new loan term that could help you pay off your house early. Or you could refinance to cash out home equity. Refinancing, in simple words, means taking out a new mortgage loan to replace your existing one.

When you refinance, you apply for a new home loan just like you did when you purchased the house. But this time, instead of using the loan money to buy a house, it is used to pay off your existing mortgage. Homeowners prefer to refinance mortgages because you get to choose the rate and loan terms on your new mortgage( that may be better than your old loan).

Compare your mortgage loans with a Mortgage citizen now. You can find a home loan now to meet every need. 

How soon can you refinance a mortgage?

Well, that solely depends on the type of loan you have taken. Some mortgages let you refinance immediately after getting the original loan if you want. While some require a period to elapse (what the mortgage business calls seasoning)

There is no hard and fast rule for how many times can you refinance. It is wise to refinance only when it is financially beneficial for you and saves your money. 

Check our guide on How to get the best mortgage.

Ascertaining how soon you can refinance a mortgage relies profoundly on calculating your break-even point. In this estimation, you divide your total refinance cost by your monthly savings, which tells you how long it would take you to recover your refinancing costs. The result is the number of months you should stay in your home to make a refinance usefully. Refinance closing costs can range from 2% to 6% of your total loan amount, and it can take at least several years to recover those costs. 

Refinancing a mortgage can be either a good or bad idea, depending on your motivation and goals. To decide if refinancing makes financial sense for you, it’s a good idea to run the real numbers with a mortgage refinance calculator. Obtaining a mortgage with a lower interest rate is one of the greatest reasons to refinance.

Now that you know everything about refinancing your loan- make sure you do it for a constructive reason.

Check our guide on How to lower mortgage payments.

Points to note before refinancing

  • Some mortgage lenders have pre-payment punishments. That beat in if you refinance your loan or sell your home within the period of three to five years.
  • It can affect your credit scores. 
  • It Will also determine your qualification requirements. Making it challenging to get a new loan to replace it with an old one.
  • Some lenders may demand a waiting period between your mortgage loans, which can restrict your opportunities when you are looking for a loan with the best terms for your needs.
  • You may need to pay for many of the same kinds of closing costs you paid for your first mortgage. Like origination fees, appraisal fees, and lending fees.

Note- You can always refinance your mortgage as many opportunities as it is financially sensible to do so.

Reasons to get a mortgage to refinance

Well, there are many reasons when refinancing can actually work for you. It can help you save a lot of interest and money. All you need to do is check what best suits your financial needs. There are times when considering to refinance your loan works wonders for you. 

  • It is good when you suddenly need a lower monthly payment
  • If your ARM is higher- and making your payments too expensive, it may be time to refinance into a fixed-rate mortgage.
  • If you have trouble in keeping up with your monthly payments. 

Check our guide on What is a wraparound mortgage.


So, when to refinance a mortgage is a choice you must make with proper planning. Make sure to evaluate all your options before making a decision. When buying around for a new mortgage, remember to look not just at interest rates- but also at closing costs, good faith estimates, and the break-even point. If you are planning to refinance your mortgage loan – understand both the advantages and drawbacks, compare multiple lenders to ensure you get the best terms possible.

Remember, It doesn’t make sense to refinance and pay the closing costs if you are planning to sell it a year down the line. Refinancing is only worth it if you discover that you can save monthly or over the life of your mortgage loans.

You must always understand why it is essential for you to refinance your loan. And then figure out whether it makes sense in your particular circumstances to take a loan. Keep checking your credit score simultaneously to avoid potential issues. 

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