Let’s say you buy a new home. You get your mortgage and then you notice rates have dropped and you can get a better deal. Do you have to wait?

Below, we’ll answer the common question “how soon can you refinance your mortgage?” This way you’ll know if you have to wait or if you can jump right in and refinance as soon as you want.

Home Refinancing

What does home refinancing do? When you refinance your mortgage, your current loan is paid off and you get a new one with different terms.  

Basically, you replace your existing loan with one that has better terms for you. There are a number of benefits to doing this. The big ones being a lower monthly payment, a lower interest rate and/or a shorter term for your loan.  

When a better deal for a mortgage comes along, it can save you a ton of money. With all that said, you may now be interested in home loan refinancing. And you may want to do it as soon as possible. 

But how soon after you get your original mortgage can you refinance? Let’s take a look below… 

How Soon Can You Refinance A Mortgage?

Well, there is no cut and dry answer to that question. Why? Because the answer to that will depend on many factors. 

One of the factors that affect how soon you can refinance your mortgage loan is the type of loan you have. Another factor that may determine when you can refinance your home loan is the type of refinance mortgage you’re getting.

To give you an idea, there are mortgages that allow you to refinance as soon as you get your first home loan. However, there are also other mortgages that you have to wait a period before refinancing. 

The latter is called “seasoning” in the mortgage business. Now let us tell you how soon you can refinance your home loan depending on the type of mortgage

How Soon Can You Refinance a Conventional Mortgage?

Conventional home loans are home loans that are not backed by the Federal Housing Administration, U.S. Department of Veterans Affairs or U.S. Department of Agriculture. They are also not jumbo loans.

When it comes to conventional home loans, there is no waiting period before you can refinance your current mortgage with another lender. 

That means that as soon as you get your mortgage, you can refinance it. However, you may have to wait six months if you want to refinance your mortgage with the same lender as your current one. 

Refinancing a Federal Housing Administration Mortgage

When it comes to housing loans insured by the FHA, how soon you can refinance will depend on the type of refinances. 

For a cash-out mortgage, you will have to wait at least a year before your refinance. Also, you will need to own and occupy the home as your primary residence in order to do so. 

For rate and term as well as simple refinance, it will take 7 months before you can refinance. You have to make 6 on-time mortgage payments during that time.

For FHA streamline, it’s pretty much the same. You have to make at least 6 monthly payments and have your mortgage for 210 days.

Refinancing a USDA Mortgage

The USDA mortgage offers two programs for people looking to buy houses in rural areas. Those are direct and guaranteed loans. 

Guaranteed loans take a year before refinancing. On the other hand, direct loans have no waiting period for refinancing.

VA Mortgages Refinance

For VA Mortgages, you will need to wait for 7 months/210 days and make 6 payments to refinance your mortgage. 

Jumbo Loans Refinance Timeline

For a jumbo loan, you can refinance your mortgage anytime as you can with a conventional loan.

Leave a Reply