How Often Can You Refinance
Refinancing the mortgage is one of the issues in real estate that makes several people confused. But if you only know the reasons why it is a very important one, you will never have doubts in refinancing over and over again.
But the real question is, how often can you refinance?
There is really no limit when it comes to refinancing your mortgage. But, you need to take note of the factors that you need to consider so that you will know the right time to do it. In this article, you will be provided with the direction on how to decide in refinancing the mortgage and how often it should be done.
How Often Can You Refinance--Discover the Truth
Usually, most lenders do not accept the refinance loan application if you have already refinanced in the last six months. This is known to be one of the major factors that control the pace at which you can have the mortgage refinanced. There are also loans that are known to have pre-payment penalties. They are known as the fees that you will owe to a certain lender if you would payoff the mortgage before the loan’s full term. So, in mortgage refinancing never ever take a loan having a so-called prepayment penalty.
There are also events that will justify the number of times you can refinance your mortgage such as when the rates of the mortgage refinance have dropped, when you no longer have money to afford the mortgage payment, when you need cash and you have home equity, when you want to change the terms of the mortgage and you are going through a situation that demands a change of the financial landscape. These events may also contribute to your decision on when you can refinance the mortgage.
Back then, when the real estate market was on a high demand the people were refinancing their homes frequently. When the rate of mortgage dropped, the homeowners took the opportunity to lower the interest rate. This resulted to a major drawback to frequent refinancing.
Another factor that can greatly influence the number of times you refinance the mortgage is the number of fees that are associated with it such as the prepaid finance charges, document prep fees, recording fee, appraisals and title insurance. These fees will also depend on the loan’s size.
Experts of today’s housing market are advising homeowners that they need to base their decision of home refinancing on the whole picture of their financial capability. One of the things that you need to take into consideration is the length of time you will be staying in the house.
Now, you already know that you can refinance the mortgage anytime you want, the next thing you need to do is figure out how often you can do it. By taking into consideration the factors, you will not have any mistake.