How Often Can You Refinance Your Home?
At times, homeowners might find themselves in a situation where they struggle to make their monthly mortgage payment or possibly to meet their monthly payments on car loans, credit cards and miscellaneous loans.
One possible option may be to refinance their mortgage to lower the monthly payment to an amount that works with their financial standing dependent on the current level of interest rates.
Refinancing may be the lowering of monthly payments, the shortening of a mortgage term or taking equity out of the property. When taking equity out of the property this is termed a cash-out refinance where you replace your mortgage, possibly pay off debt and walk away the cash in your pocket. This type of refinancing is beneficial to those who may want to remodel a room in their home, make some repairs or pay off their existing debts.
Similar to purchasing a home, there are prerequisites such as checking the homeowner’s credit score, income, accumulated debt, and the overall value of your home. There is technically no limit to the number of times a homeowner can refinance their home, whether it is a rate-and-term refinance or a cash-out refinance. The homeowner needs to meet the mortgage lender’s requirements.
While there is not limit to the number of refinances you can complete, it may be likely you will need to wait six months between refinances. Cash out refinances typically only go up to 80% of the calculated market value of your home. Hall Financials’ Refinance Experts can help you through this process seamlessly by assisting you in deciding if now may be a good time to refinance your home.
For more information, chat with us at callhallfirst.com or give us a call at 866-Call-Hall.