I am thinking about refinancing because the payments the mortgage payment calculator presented are pretty good, do I have to worry about how long I have my present mortgage for before I can refinance?

Once a person gets a mortgage, there is generally no restrictions on the length of time before the borrower can refinance or pay off the loan.  Unless there is a prepayment penalty clause in a mortgage, you should be able to refinance anytime you choose.  If you’re thinking of refinancing very soon after getting a new loan or mortgage, there is the possibility that you did not do enough research the first time or, if you did, your decision to refinance that loan now should be thoroughly reviewed.  If the interest rates are low enough right now or there are other conditions such as the present loan is and adjustable rate and you prefer a fixed rate, use the mortgage calculators to check the new payments as well as the mortgage qualification calculator to make sure you qualify based on any changes you may have in income and debts, and apply for loan that is more suitably matches your goals.  Some borrowers who have put less than 20% down to buy a home have mortgage insurance included in their monthly mortgage payment, if the property is now worth more due to appreciation or significant home improvements, these borrowers can refinance gain and possible remove the mortgage insurance cost.

This entry was posted on Wednesday, December 10th, 2008 at 5:12 pm and is filed under Mortgage FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.