When Can I Refinance My Mortgage?

Curious about how soon you can refinance your mortgage? Learn the facts about the home refinancing process and timeline.

Refinance Your Mortgage written on note with pencil and office supplies. Business Concept.
Refinance Your Mortgage written on note with pencil and office supplies. Business Concept.

How soon can I refinance my mortgage? Whether you want to consolidate high-interest debt or lower your current mortgage interest rate, refinancing can be a good option for homeowners. The timeline for when you can refinance depends on several different factors. Take a closer look at what impacts mortgage refinancing to help you determine when you can move forward.

What Factors Determine When You Can Refinance a Mortgage?

The two primary factors that determine when you can refinance are your mortgage lender and the type of refinance you need. Some lenders have penalties for prepayment that can be problematic for homeowners trying to refinance within three to five years after the purchase. Other lenders require a specific waiting period between the two loans, which can limit your refinancing options.

How does the refinance type come into play? If you want a cash-out refinance, there is typically a waiting period of six months following the closing of your mortgage loan.

Understanding the Refinancing Timeline

Depending on the type of mortgage loan you have, here’s how soon you can typically refinance:

  • Conventional Loan: In many cases, you can refinance as soon as you like. If you are choosing the same lender for the refinance, there may be a six-month waiting period. The exception is if you are choosing a cash-out refinance, which requires that you have owned the home for six months unless you received it as an inheritance or through a divorce settlement.
  • FHA Loan: The FHA loan has several different rules about the waiting period for refinancing. Depending on your situation, you may have to wait between six months and one year to refinance the mortgage.
  • VA Loans: With a VA loan, you need to wait until you have made at least six payments and a minimum of 210 days to refinance.
  • USDA Loans: There are different loan programs through the USDA. Depending on your mortgage type, you will have a waiting period of 180 days to one year.

Is now the right time to refinance your mortgage, or does your situation require a waiting period? Connect with the experienced consultants at Midland Mortgage Corporation to find out for sure.

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