Refinance question:

[Earth_First]

How long does one need to wait before refinancing a prime 30-year fixed rate mortgage after closing?

[Nickster]

1. Technically, you can do it right away. Most lenders want the loan to be "seasoned" with a year or so

of payments before they talk to you. I did three re-fis in the span of a year.

[Earth_First]

3. Thanks.

We're looking at a refi right now, as we've been here just under a year, and perhaps can refinance at just over a full percent under our current rate.

[WCGreen]

2. I believe that is up to the bank or institution that holds your loan...

There may be penalties involved if the time period is short...

[AlCzervik]

4. we had our mortgage for a year and then we refinanced to a 15 year fixed, the pmt

is higher but we'll have our house paid off a lot sooner, if you can swing it see how much the payment will be on a 15 year.

[jojo54]

5. A tip if you're rolling the settlement charges into the refi.....

wait for a rate drop of at least 1 1/2 % or more because you'll find it tacked onto the back end of the loan. When you go to sell is when you'll feel the squeeze.

Also, don't go with a mortgage broker - they just wind up selling off the mortgage and it could be to some crappy lender who tacks extra charges onto your loan, and they don't have to tell you squat. See if you can get it on paper that your mortgage won't be sold after the refi.

These are just a few tips 'cause hub and I have gotten screwed literally, out of nine thousand dollars on 2 mortgages and 5 refi's. It took us almost 3 months to complete the mortgage on our most recent home because we did some much research and demanded answers.

Be careful and good luck.

[flvegan]

6. *watch out for prepayment penalties*

Many mortgages/notes have a penalty if paid off in the first 2 years. Some have one at any time in the loan. Go over your documents.

Can't stress this enough.

[dysfunctional press]

7. that's something to check on before ever closing in the first place.

i would NEVER accept pre-payment penalties on a mortgage.