If you buy a new house through the financing option, it certainly changes your financial situation. We understand you are stuck in the dilemma of how soon can you refinance after buying a new house.

We are a mortgage company, and as an adviser, we recommend the exact scenario. In this blog, you will explore the factors that have an impact on the financing, its timing, and how soon you will be able to repay it.

The timeline of refinancing completely depends on your financing type. Let’s break it down through the loan type.

conventional loan

A conventional loan is a loan that government agencies do not back. The timeline of such financing can be quite easygoing.

Rate and term refinance:  in rate and term refinancing just after buying your new home. You do not need to have to wait for a long term on the conventional loan.
Cash-out refinances: Most lenders offer the buyer the opportunity to own a new home for at least six or more months before cash-out refinancing. This is the most feasible option compared to a rate and term refinance.

FHA loans

The lenders who are offering FHA loans to the client have some specific rules about refinancing.

FHA streamline refinancing: if you have opted for the FHA loan, you have a maximum of six months or a minimum of 210 days from the closing date.
FHA cash-out refinance: If you want to apply for the FHA cash-out refinance, you need to settle down and own your property first. After at least 12 months, you can apply for it.

Factors affecting finance timing

Every financing or mortgage company has its own rules, but beyond that, many factors affect the refinancing timing. you can explore those factors

lender overlays

Some lenders offer their waiting period, which ranges from 90 days to 12 months, Regardless of loan type. These types of timing are called seasoning requirements.

prepayment penalties

Some mortgages have early payment fees that can make refinancing expensive. However, it’s rare nowadays. You need to check your loan papers to see if this is true for you.

closing costs

When you refinance, there are closing costs. You need to make sure you have enough equity in your home or cash on hand to pay for these costs.

home value

After purchasing the home, its value may change. You have only the option of waiting for more equity before refinancing.

credit score

If your credit score has gone down since your first mortgage, you should wait to refinance.

Final thoughts

After buying a home, the primary pressure that everyone is facing, in this blog, you can get the information regarding How soon you can refinance after buying a new house. The time limit of your refinancing completely depends on your financing option and the rules of the lenders. Further, some factors also hit the time limit of refinancing your new home. Our company, A Plus Mortgage, offers the financing option for your new home. If you are looking for a new home and desire to have flexible refinancing you can approach us.