Refinance my mortgage loan after 6 months?

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I was told by Quicken Loans that I would be able to refinance my 30 yr loan 6 months after I get it.Could this be something bad? It seems too good to be true since most lenders make you wait more. Any one know of any consequences?

7 Comments
  1. Reply
    wartz
    April 29, 2011 at 11:30 pm

    You would get to pay origination fees twice.

  2. Reply
    Peter C
    April 29, 2011 at 11:43 pm

    You can refinance all you want, just pay attention to all the fees your going to pay.

  3. Reply
    Rick K
    April 30, 2011 at 12:04 am

    as long as there is no penalty for paying it off so soon you should be fine and with a lower rate probably

  4. Reply
    newjerseyguy
    April 30, 2011 at 12:43 am

    First, ask yourself why you want to refinance. Are you trying to get a lower rate, get rid of an ARM or get equity out? Second, look at your current loan to see if there is a penalty for early refinancing (some have an early pay-off penalty). Third, look at current loan rates and your credit score to see if you still qualify.

  5. Reply
    jeffery d
    April 30, 2011 at 1:04 am

    OH great I can refi every 6 months this is true. One quicken loans are more focused on arm’s and interest only loans which are to get ppl in a home at a more affordable monthly payment and are only good if you only plan to be there for less than 3 years. Refinancing after only 6 month is a way for them to make more money and keep you in debt longer for in any loan you pay more in interest on the front in (first 6 months your basiclly paying 900% during that time period) Not a good idea , unless your going from an interest only or ARM to a simple interest FIXED loan.

  6. Reply
    Quicken Loans
    April 30, 2011 at 2:01 am

    Hey there!

    Yes, that’s definitely true and there are no consequences. Most of our products don’t have any minimum time that you would have to be in the home to refinance, except for our FHA loans.

    Does it make sense? That’s another question, one that every client looking for a refinance has to ask. I’m not familiar with your particular loan or property, so I couldn’t say for sure. There’s a lot of things that could be different in 6 months – interest rates, your credit, your home’s value, your goals for the home. As these things change or improve, you have more options and could potentially benefit from a refinance in 6 months.

    Talk with your banker at that time to make sure it makes sense. We’re into earning your business and certainly always want to make sure that you’re in the best possible financial position.

    Feel free to contact me directly if you have questions. Thanks for working with us!

  7. Reply
    mefuture
    April 30, 2011 at 2:41 am

    There are many great reasons to refinance. With lower cost, adjustable rate, and 0-down options, traditional loan programs like 30-year or 15-year fixed rate mortgages don’t always allow us to meet our financial goals. Today, even reducing your mortgage interest rate a little can save you big over the life of your home loan. Take a look below at some reasons to refinance.

    1. Lower Your Monthly Payment
    If you plan to live in your home for a few years, it may make sense to pay a point or two to decrease your interest rate and overall payment. Over the long run, you will have paid for the cost of the mortgage refinance with the monthly savings. On the other hand, if you plan on moving in the near future, you may not be in your home long enough to recover the refinancing costs. Calculating the break-even point before you decide to refinance can help determine whether it makes sense.

    2. Switch From an Adjustable Rate to a Fixed Rate Mortgage Adjustable rate mortgages (ARMs) can provide lower initial monthly payments for those who are willing to risk upward market adjustments. They’re also ideal if you don’t plan to own your property for more than a few years. However, if you have made your house a permanent home, you may want to swap your adjustable rate for a 15, 20 or 30 year fixed rate mortgage. Your interest may be higher than with an ARM, but you have the confidence of knowing what your payment will be every month for the rest of your loan term.

    3. Escape Balloon Payment Programs
    Like adjustable rate mortgage programs, balloon programs are great when you want lower rates and lower initial monthly payments. However, if you still own the property at the end of the fixed rate term (usually 5 or 7 years), the entire balance of your mortgage is due to the lender. If you are in a balloon program, you can easily switch over into a new adjustable rate mortgage or fixed rate mortgage.

    4. Remove Private Mortgage Insurance (PMI) Zero or Low down payment options allow homeowners to purchase homes with less than 20% down. Unfortunately, they also usually require private mortgage insurance, which is designed to protect the lender from loan default. As the value of your home increases and the balance on your home decreases, you may be eligible to remove your PMI with a mortgage refinance loan.

    5. Cash In on Your Home’s Equity
    Your home is a great resource for extra cash. Like most homes, yours has probably increased in value, and that gives you the ability to take some of that cash and put it to good use. Pay off credit cards, make home improvements, pay tuition, replace your current car, or even take a long-overdue vacation.

    If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at:

    https://www.bills.com/mortage/refinance

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