How Many Times Can You Refinance a Mortgage?
If you’re considering getting a new, lower rate mortgage but you’re wondering how many times can you refinance a mortgage, this article is meant for you. The truth of the matter is that you can refinance a mortgage as many times as you want; there really is no limiting number of times. There are however, other limiting factors that you
should keep in mind. Just because interest rates remain extremely low and you may be hearing a lot of noise about the fact that you need to act now before rates go up, doesn’t mean that refinancing is the right thing for you to do right now.
Something you need to keep in mind when it comes to refinancing a home mortgage is that you are literally getting an entirely new loan on your property. This means that you’ll have to go through all the same processes you went through when you got your current loan. And this includes many of the same expenses such as getting an appraisal, paying title fees and closing fees as well as paying the lender some fees to undertake the whole process. Considering all these expenses can add up to a pretty significant amount of money, you really need to figure out whether it makes sense for you to refinance right now or not.
If you are wondering how to know if it would make sense for you, there are a couple of routes you can take. Probably the best route would be to talk to an honest, professional mortgage advisor. While the industry as a whole has taken a lot of heat over the past few years regarding shady practices, the truth is that there are a lot of good, smart, honest and hard working loan originators out there who would be happy to answer your questions, even if it doesn’t mean they’ll make any money from you.
You see, if they give you good information and don’t pressure you to go forward with a loan that you don’t need, you will probably be impressed with their professionalism. And while you a good loan officer won’t try to pressure you to buy a loan you don’t need, they may very well ask you to keep their name in mind in case you hear of anyone else considering a home financing. They may even ask you to take a few of their business cards to pass along, should the opportunity present itself. This is normal as a good loan officers’ business is largely built from a referral base. If they have taken the time to answer your mortgage questions without pressuring you to purchase a loan, then do the right thing and share their good name with the people you know.
If you don’t know of any good, reputable mortgage lenders, ask around. There’s a good chance someone you know knows a good lender and will be happy to share their name and contact information with you. Another option is to go to Zillow.com’s mortgage market place. There you can look up lenders in your area and see what kind of customer feedback they have received. Clearly some are better than others. The good thing about this website is that you can submit a scenario and have multiple lenders provide quotes to you, but you remain anonymous. In other words, you won’t get barraged by phone calls and emails. Instead, if you see a quote and a lender that you like, it is up to YOU to reach out and contact them. Quite a good concept, if you ask me.
Finally, if you want a little background on when is a good time to refinance after mortgage purchase, you can check out this page about “when to refinance rule of thumb”.
