I Just Bought a Home – Is it Too Early to Refinance?

Published on September 19th, 2016

Trying to get the most bang for your buck? You love your new home but you might be looking for a way to save some money.  Refinancing your mortgage is great way get yourself in a comfortable financial situation and could be a good choice for you. But when is it too early?

There are no timeframe limits when it comes to refinances.  You just moved in last week?  That’s okay.  You can refinance the day after you move in. It all depends on your lender.  Refinancing doesn’t correlate with when you bought your house but many lenders like to see, or may require, a set amount of time before you refinance in some cases.  No matter how long you’ve owned your home or how long it’s been since you last refinanced, if rates are dropping, refinancing may be a tempting option. See how much you could potentially save by running a free rate quote right now!

How do I know when refinancing is right for me?

A refinance is beneficial when you save more than you spend. Frequently closing costs can be included in the new mortgage, and there may be closing costs you’ll have to pay out-of-pocket when you refinance your mortgage. Take into consideration the following questions: How long it will take you to recover your total closing costs? How long you will be in your house? How will this affect the remaining term of your loan? What will your new monthly mortgage payment be? A good rule of thumb some people consider: If you can reduce your payment enough to get your closing cost back in two years, you should do it!

Many people like to refinance to take cash out, shorten their loan term or make lower monthly mortgage payments. A cash-out refinance is possibly available if you have built equity in your home. You can take out the cash out for other expenses, home repairs and renovations. A rate and term refinance changes the interest rate (APR) and term length but not the loan amount.  You may be able to take advantage of a shorter loan term and a lower monthly payment.

With vLoan, you can apply for a refinance whenever you want.  Our digital platform puts you in the control of the mortgage process from start to finish. The dedicated mortgage advisors at vLoan will help you figure out if it’s a good option for you.  Contact a mortgage advisor today at 1-844-778-5626 or feel free to email us at contact@vloan.com.

 

Are you ready to get your digital mortgage process started?

Want to compare your options before you get started?