Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties)

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Rainer
187,740
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

You can refinance the next day, however it should be 6 months if you are using the same LO. If it is shorter, the LO would have to give back his commission, if he is using the same lender

Apr 25, 2019 05:12 AM
Rainmaker
3,021,014
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It depends if there is a pre payment penalty and if the new mortage has a seasoning requirement. Most will have a waiting period but some may be as fast as they can get a new appraisal and process it

Apr 25, 2019 05:31 AM
Rainmaker
1,543,435
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Don't know so I'll go with what Bob Betel said.

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

My first question would be is WHY?

Apr 25, 2019 05:21 AM
Rainmaker
3,130,683
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I have no clue, Inna. Why would someone want to refi that quickly? Maybe a better solution is to recast a loan. We have lots of great lenders here in the Rain includin, George Souto and Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi and Joe Petrowsky who could provide an answer.

Apr 25, 2019 04:00 AM
Rainmaker
1,010,081
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

I'm going to have to wait for answers Inna. The subject has never come up for me and I do not have a favorite AR lender whom I could tag that I've had experience with.

Apr 25, 2019 03:48 AM
Rainmaker
2,799,751
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Too many AR lenders to mention just one.  
I am working with Tom Parke, Mason McDuffie Mortgage.  He and his team are the BOMB!  

Apr 25, 2019 07:47 AM
Rainmaker
767,336
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The road to success is paved with money. Refinance of a conventional loan immediately after closing stimulates that swirling image of money flushed.

Fortunately, there are many finance instruments available if one knew this was a possibility. Sometimes life interrupts our best intended plans, often at a very high cost.

Apr 25, 2019 06:44 AM
Rainer
3,605
Chad Vogel
Bremer Bank - Minot, ND
I Specialize in Mortgage Lending in North Dakota

You can refinance your conventional loan the very next day as long as it is not a cash-out refinance.  A cash-out refinance has a 6 month waiting period from the close of escrow before a cash-out refinance can be completed.  Typically it does not make sense to refinance so soon after a loan closing as you would incur all of the same closing costs all over again.  So.....yes it is possible to refinance after the close of escrow, but does it make sense in your situation is the question?  Chad Vogel

Apr 25, 2019 06:32 AM
Rainmaker
1,620,686
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Chad Vogel is hands down my favorite AR lender Inna Ivchenko and hopefully he can answer your question.

Apr 25, 2019 06:19 AM
Rainmaker
820,246
Diana Zaccaro
Tropical Beachside brokered by eXp - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

I haven't had this come up in a long time but when it did, it had to be seasoned first. And, of course, if there is a prepayment penalty, there is that to consider. Perhaps Caroline Gerardo can help...she is also in Cali.

BUT...why would someone want to do that?

 

Apr 25, 2019 05:51 AM
Rainmaker
417,258
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

How fast?? - Immediately. It can be immediately after closing. As to why???.  There are applications where this is a very handy technique but such applications do carry some risk and are not typical for a realtor run into and such techniques are beyond my comfort level.

This immediate refi tactic was used by investors in the Vegas area in 2004-2008 approximate time frame. Builders had overbuilt and had investors/speculative buyers not performing on homes once they were completed simply because the market was tanking and the think was - the home is not worth the price on the P&S Agreement that I signed 6 mos or a year ago (they were signing agreements well before construction had even begun) so I'm not closing. So here's where the two loan strategy came into play.  Some savy investors knowing about the above situation stepped in and approached these builders with finished unsold product stacking up from too many buyers not closing on their "new" homes.  The investor offers the builder 80% of asking price (80% below market)  - perhaps takes 2 or 3 (or 5 or 10) of these problem homes off the builder's hands. The investor either buys them all themselves or has a pool of buyers all buy, each with an 80% loan on the home they are getting a 20% discount on. So they are putting 20% down on their discounted purchase. Then at closing they immediately do a cash out refi into an ARM or even negative am loan. On the refi they get their 20% down payment back and have a monthly payment that's below market rent. They rent the brand new no maintenance needed home out and get a positive cash flow with "effectively" no money out of pocket (well 20% went out but it came back in often even able to get more than their 20% if the appraisal came in high enough).   They then hope and pray that the market appreciates so the scheme doesn't crash because it will crash if the market depreciates for too long - those low or negative am loans only last 2 or 3 years. So there's one example of why someone may want to an immediate refi at closing.

Anyway, although that specific scenario is not relevant in most of today's markets, there are ways to  minimize effective cash out of pocket even in today's market using the immediate refi technique. Not so much for owner occuppied but there are uses for investors.

Apr 25, 2019 07:33 AM
Ambassador
1,644,335
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Not sure but I use Richard Advani with Wells Fargo in LA.

Apr 25, 2019 07:18 AM
Rainmaker
1,548,850
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

as Bob Betel wrote...spot-on!

Apr 25, 2019 06:27 AM
Rainmaker
3,301,161
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

We have too many AR mortgage loan officers here in the Rain to mention them all. Find one licensed in your state and get the correct information. Good luck! 

Apr 25, 2019 05:11 AM
Ambassador
4,265,295
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I am sure that it depends on the contract terms.

Joe Petrowsky 

Apr 25, 2019 03:49 AM
Rainmaker
1,080,152
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

That's a great question for a licensed mortgage broker.

Apr 25, 2019 04:40 PM
Rainmaker
469,924
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Parked and learning.

Never had this scenario happen in my practice.

Too mant Active Rain Lenders to mention just one. 

 

Apr 25, 2019 03:50 PM
Rainer
54,105
Ken Jones, Realtor
Realty ONE Group Central - Freehold, NJ
There's no substitute for Experience.

Inna Ivchenko In my experience, one can do a refi as soon after closing as fast as they can submit the paperwork.

Apr 25, 2019 01:39 PM
Rainmaker
481,698
Jason E. Gordon
AmeriFirst Financial Inc, San Diego, CA - San Diego, CA
Sr. Loan Officer, CMPS, CDLP, RCS-D, CDPE, CMHS

Depending on the scenario, there are no restrictions. Pre-Payment Penalties (PPP's) are rare nowadays, but we still need to account for the possibility that a PPP exists.

The math has to make sense in order to justify a "Borrower benefit" to get the refinance approved (i.e. if the Borrower just paid +/- $4K in closing costs and wants to do it again, there really needs to be a clear benefit for doing the new loan...especially if additional fees will be paid by the Borrower on Loan #2).

Looks like several quality Lenders have already weigned in, so I'll keep my response brief.

It bears noting that Lenders typically have to pay back their commissions if the Borrower makes less than 6 monthly payments. As brutal as it sounds, it is true. It is called an Early Pay Off (EPO) and is written into the contracts that Lenders have with their Loan Officers. 

I'm sure the other Lenders on this thread would agree that if a new loan needs to be done within 6 months, it would be a nice gesture to let the original Lender get the new loan done.  It's better to have done the work twice and gotten paid once, than to have done the job once and not received payment.

Apr 25, 2019 10:58 AM
Rainmaker
5,035,923
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

it looks like Chad Vogel pegged this one first....

Apr 25, 2019 07:45 AM
Rainmaker
4,488,333
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Have no idea and no favorite lender.

Apr 25, 2019 07:29 AM
Rainmaker
3,051,312
Richard Weeks
Dallas, TX
REALTOR®, Broker

Parked are waiting 

Apr 25, 2019 04:09 AM
Rainmaker
776,375
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I think within 6 months with no fees

Apr 26, 2019 10:07 AM
Ambassador
895,770
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

You can refinance immediately in MOST cases - there are cash out restrictions for cash out refinances, but rate/term refinances, you can do immediately

 

BUT - many lenders will be penalized if a loan is paid off within 6 months of it being originated, so if you're working with a lender you like, just know if you do a loan with them, then immediately refinance it, it will likely hit them with an "early pay off (EPO)" fine.

My favorite AR lender is me, but I am extremely biased ; )

Apr 25, 2019 08:03 PM
Rainer
236,642
Caroline Gerardo
CMG Financial - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Start the bones the day before you close. I can close in 11 days

Apr 25, 2019 02:02 PM
Rainmaker
1,246,882
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I've never done it, my rates are way low.  :) 

Apr 25, 2019 09:34 AM
Rainer
247,962
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Usually a cash-out refi has a 6 month seasoning requirement. There are several factors to consider and different lenders may have different overlays as well. Be sure to check on a pre-payment penalty (though most loans don't have them these days). As Bob mentioned, the LO could potentially have to pay back commission. 

Apr 25, 2019 09:03 AM
Rainmaker
705,051
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

I think it's 3 months Inna....

Apr 25, 2019 08:52 PM
Rainmaker
1,838,660
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I don’t believe there are any limitations .

Apr 25, 2019 12:39 PM
Rainmaker
1,021,679
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

6 months with same lender.

Apr 25, 2019 10:11 AM
Rainmaker
5,423,671
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Immediately.

Apr 25, 2019 10:04 AM
Rainmaker
689,536
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

In a perfect world, the next day.

My fav lender is not on AR.

Apr 28, 2019 05:21 PM
Rainmaker
1,234,213
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

The simplest answer is 6 months ... however, nothing prohibits someone from refinancing immediately after closing.

There's a good chance that the original Lender would forfeit any/all commission earned on that first transaction, if done sooner than 6 months.  That said, I, along with others here, wonder what are their reasons for refinancing so quickly?

From my viewpoint as a LO, I'd hope to have been made aware of the borrower's thoughts and reasons for taking this action PRIOR to closing on the first loan.  Depending on the scenario they face, a refinance could be a wise move or ill-advised ... and it could also change the financing options that make the best sense for the first transaction/loan.

There's a HUGE need for a thorough conversation here ... with all information out available to both client and LO ...

If you have further questions, Inna Ivchenko ... feel free to give me a shout.  So much depends on the particulars of the specific client.

Good Luck!

Gene 

Apr 26, 2019 10:26 AM
Rainmaker
1,495,547
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Here is one of the reasons to do that: the buyer is getting a good deal with low down and substential equity especially if fixed. It does have sense to refy since it is a fixer and needs a lot of work and they are low on cash.

The only reason not do it is: to allow LO to keep his % that sometimes on low down loans are quote high. 

Apr 28, 2019 05:35 PM
Rainmaker
4,104,687
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I bought my house before selling my other one.  The DAY I closed my primary, I refinanced my new home.

May 10, 2019 10:37 AM
Rainmaker
3,202,442
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I had one 2 years ago and it was 6 months.

 

Apr 30, 2019 01:38 PM
Rainmaker
737,675
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Good question and you got some good responses!

Apr 30, 2019 09:42 AM
Rainer
52,298
Joe D'Agostino
NMLS# 729950 - Manahawkin, NJ
Mortgage Officer 46 years!

Some lenders will ask for a fee to cancel a mortgage within a certain time period and some lenders could care less. If it's a cash deal and now the buyer want to re-fi to get some of his/her money back, it really should not be any problem.  Call the lender , if one is involved......

Apr 29, 2019 08:54 PM