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Refinance Purchase Home Equity

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Fixed ARM Interest Only FHA

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Can I Refinance Immediately After A New Mortgage Loan?

By Ann White

Learn about your options on refinancing after a new mortgage loan, plus get the information you need to make the right decision on whether to refinance and if it is right for you.

Purchasing a new home can be an exciting time. When you first take out your mortgage loan you hope you are getting the best rate available at the time. But what do you do if you have already obtained the mortgage loan and rates drop? You want to know how to take advantage of this, and wonder if you can refinance immediately after a new mortgage loan.

Refinancing a New Mortgage Loan

When you take out a new mortgage on a home, generally there is a cooling off period in some states known as a right of rescission. This right of rescission gives the new homeowner approximately three days to nullify the mortgage contract, or back out of it. Generally, once a homeowner has obtained the mortgage however, the option to refinance immediately depends on the lender. There is usually a waiting period of 12 months before you can refinance a new mortgage. Sometimes the waiting period can be as short as 6 months. Most lenders will not allow you to refinance a new mortgage until you have made at least one year of payments on it however.

When Should You Refinance Your Mortgage Loan?

The best time to refinance a mortgage is when interest rates are lower and if you can take out a longer term loan and lower your payments. It is not feasible to refinance a new mortgage loan because it will be a lot more expensive for you in the long run with closing costs and origination fees. Waiting for a period of time before you decide to refinance your new mortgage, and building equity in your new home may be better for you financially. Ultimately it is your decision and what you think is best for you financially. Talk to a mortgage or loan specialist before you take the plunge.

Related posts:

1. What Occurs When I Refinance My Mortgage?
2. What Is The Catch If I Refinance My Mortgage To A Lower Rate?
3. What Is A Streamline Refinance?
4. How Often Can I Refinance My Mortage?
5. How Soon Can I Refinance An Adjustable Rate Mortgage?