How often can someone refinance a home mortgage?
Mr. Christopher asked:
Lets say in a 3 year period? I know I have enough equity in the home and just wondered if someone knew. Thanks!
The main reason for my question is I refinanced last year. My mortgage was then purchased by another lender and the new lender is THE WORST in service. I want to get away from them but was not sure how. I could not stop my loan from being bot/sold but wish I could have.
Charlie
Lets say in a 3 year period? I know I have enough equity in the home and just wondered if someone knew. Thanks!
The main reason for my question is I refinanced last year. My mortgage was then purchased by another lender and the new lender is THE WORST in service. I want to get away from them but was not sure how. I could not stop my loan from being bot/sold but wish I could have.
Charlie
Tags: Home Mortgage, Refinance Mortgage
May 27th, 2009 at 3:49 am
Rose
you can refinance your home as many times as you want, but it’s the best way to have 6 mts period between new refinance.
the new lenders will require this.
May 27th, 2009 at 4:15 pm
Norma
as many as you want…but each time you do it you will be paying longer
May 29th, 2009 at 1:58 pm
Lawrence
You can refinance as often as you like. Keep in mind there are fees involved with each transaction and you may not have recovered all of your costs if the time between refinances is short.
A few reasons to refinance:
1. To Lower the interest rate by 1/2% or more
2. Lower your payments
3. Lock in a fixed rate
4. Cash out for a large expense
5. Cash out for Home Improvements
Deeds of Trusts can take time to record with the local county and can at times slow the process down. If you refinance several times in a very short time frame (a few months to a year) there can be issues with obtaining a clear title report. Keep all of your documents together including the Final HUD-1 and Promissory Notes and have them ready if you choose to refinance several time in a short period of time.
~Danke Schoen
May 29th, 2009 at 5:35 pm
Aaron
You can refinance as often as you want - you just have to pay the closing costs every time.
However!
The vast majority of banks will sell the loan again on the secondary market. Therefore, if you refinance, the institution you are trying to get away from may very well become the new owner of the loan again and there would be nothing you could do to stop it!
When a bank does a loan - they are careful about it how it is set up so that it can sell or be “salable”. An “unsalable” loan is a big no-no for a bank - they don’t want to put out all that money to the individual lender - they just don’t have it! Banks want to make their cut on the loan and hand it off to one of the big banks in the country that CAN shell out all the necessary capital to a consumer.
Their are some banks that don’t resell loans. Very few though. You could find one of them and see if they would offer you a better deal.
Another thing - your loan might be sold again on the secondary market - so maybe it won’t be so bad in the future?