How Soon Can a Mortgage Be Refinanced?

There are many advantages to having your mortgage refinanced. Of course, the most important and obvious reason is the lower rate you'll enjoy. When applied at the right time and opportunity, having a mortgage refinanced can save you thousands of dollars in the long run. However, since timing plays a crucial role in refinancing, it's important that you understand the factors that can affect how successfully you can take advantage of it. So how soon can a mortgage be refinanced and should you?

The right time
Getting a mortgage is not for sissies. This type of loan, whether you're taking it out to purchase a car or a house, is easily one of the biggest financial decisions you'll ever make in your life.

If you're taking out a home mortgage loan and are considering getting it refinanced later, you'll be glad to know that you could probably do it at any time you want. But once you have a mortgage and interest rates begin behaving in a manner that is favorable to you, you shouldn't automatically apply for refinancing.

First, the difference in the new interest rate and the current interest rate should be enough to actually give you some advantages. Second, most lenders will probably advise you to refinance only after your loan has matured for a minimum of 12 months or so.

However, it's good to consider this only if interest rates have remained more or less the same. If, at any time after you have taken out a mortgage loan the market trend begins tipping to your advantage, you should consider refinancing your loan. Remember that interest rates are rather volatile and if you wait too long for them to dip further, you could miss out on a very good opportunity to get a good deal.

Consider the 2 percent rule.
Just because interest rates have fallen a tiny bit does not automatically justify your decision to refinance. Consider refinancing only if the new interest rate is at least 2% lower compared to the rate you're currently paying. A 1% difference in interest is not sufficient reason to make the switch.

Remember that there are costs associated with a new loan. When you consider refinancing for your mortgage, remember that you will have to pay extra for closing fees. An interest rate as low as 1% will not cover the expense.

You have no late payments.
You could go ahead and refinance a mortgage provided you have paid your loan faithfully for the last 12 months. If you have never had a late payment during the last year, you could make the shift and have your mortgage refinanced.

You have already built up equity.
If you want to refinance a mortgage soon, try to examine if you have already built up equity. You should have a minimum of about 5% or 10% equity (depending on the lender) before you could consider refinancing as a feasible option.

So is refinancing an option for you?
Of course, you can always consider refinancing your mortgage at any time you feel most comfortable. The key is to consider the time factor, along with the type of opportunity being presented by the market. After all, refinancing is really getting a new loan. Just be prepared for the procedures and costs that you will have to go through all over again.


My Articles

How To Get The Best Mortgage Refinance Quotes
Get Rid Of Your Subprime Mortgage With A Refinance Loan
A Quick Guide To Using Mortgage Refinance Calculators
Will Judgments On Your Student Loan Affect Your Mortgage Refinance?
What You Should Know About Getting A Refinance Mortgage In Florida
How To Know If You Need Mortgage Refinance In Toronto
Nevada Mortgage Refinance Loan
Getting Good Mortgage Refinance Rates On Bad Credit
How Soon Can A Mortgage Be Refinanced?
Refinance Mortgage Rates
VA Streamlined Mortgage Refinance
NH Mortgage Refinance
Tips For Getting Low Mortgage Rates On Refinancing
How To Refinance With A Second Mortgage
Finding Mortgage Refinance Loans In Colorado
Washington Mutual Refinance Mortgage
Lowest Mortgage Refinance Rates
Things To Remember When Comparing Mortgage Refinance Rates
Is This The Right Time To Get A Mortgage Refinance Loan In California?
Refinance Home Mortgage
Refinance Mortgage Balloon Coming Due
Texas Mortgage Refinance Loan
Tips For Finding And Using Current Mortgage Refinance Rates
How To Choose The Ideal Mortgage Refinance Broker In Ontario, Canada

My Articles

Things To Remember When Comparing Mortgage Refinance Rates Taking out a mortgage loan does have its risks. It's not something you..

Refinance Mortgage Rates Refinance mortgage rates can make your debts easier or..

NH Mortgage Refinance Life’s tough and for many, it gets tougher each day. Money is always a..

Is This The Right Time To Get A Mortgage Refinance Loan In California? Blame it on the economy. Home sales in California, as..

Related Videos:

Related News:

No item elements found in rss feed.