How Soon Can You Refi After You Buy a Home

Mar 9, 2022

Introduction: The Refinancing Dilemma

You’ve recently purchased a home, and you’re starting to wonder: How soon can you refinance? In the bustling mortgage environment of Tulsa, OK, this is a question that arises more often than you might think. This guide will shed light on the key factors you need to consider before jumping into the refinancing pool.

Why Would You Consider Refinancing?

  1. Lower Interest Rates: With a lower interest rate, you could potentially save thousands over the life of your loan.
  2. Debt Consolidation: Refinancing can allow you to roll other debts into your mortgage at a lower interest rate.
  3. Change Loan Type: You might wish to switch from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa.

Key Factors to Consider

  1. Seasoning Period: Many lenders require a “seasoning period,” typically at least six months, before you can refinance your mortgage.
  2. Loan-to-Value Ratio (LTV): Your home’s current value plays a significant role in whether you’re eligible to refinance.
  3. Credit Score: A higher credit score can unlock better rates.

Common Types of Refinancing

  1. Rate-and-Term: Changes the interest rate, the loan term, or both.
  2. Cash-Out: Enables you to tap into your home’s equity.
  3. Cash-In: Allows you to bring cash to the closing table to lower your mortgage balance.
  4. Streamlined: An easier, quicker process that requires less documentation.

Waiting Periods by Loan Type

  1. Conventional Loans: Typically a 6-month seasoning period.
  2. FHA Loans: The waiting period may be as short as six months.
  3. VA Loans: The requirement can vary but often mirrors FHA loans.

Pros and Cons of Early Refinancing

Pros:

  • Take advantage of lower rates.
  • Escape rising adjustable rates.
  • Remove private mortgage insurance.

Cons:

  • Incurring additional closing costs.
  • Extending the life of your loan.
  • Risk of a prepayment penalty.

About Kyle Bradley, Your Refinancing Expert in Tulsa, OK

Kyle Bradley | The Bowtie Lender VP Mortgage Banker
NMLS #488324
Kyle Bradley Mortgage
100 S. Riverfront Dr. Jenks, OK 74037
C: (918) 855-0494
E: [email protected]
www.kylebradley.com

With over 16 years of hands-on experience, my focus spans across conventional, jumbo, and new construction loans, as well as refinancing options. If you’re contemplating refinancing your home in Tulsa, OK, I’m here to guide you through the complexities of the mortgage landscape. For more personalized information, don’t hesitate to reach out.

Get in Touch for Expert Advice

For a tailored consultation on the right time to refinance your home in Tulsa, OK, contact me at (918) 855-0494 or [email protected]. Let’s explore the refinancing options that are best suited to your financial situation.