Question by onebyone: what law says a mortgage must be 6 months old before refinancing?
I was told that a mortgage must be 6 months old before you can refinance it. Is it true? What law (or statute or regulation…) actually specifies that?
This is in NY state, if that matters. Thanks!!
Answer by Worldly25
Not sure but fiscally it does not make sense to refinance unless your new mortgage is 2% less then your current one.
Add your own answer in the comments!
There’s no law that requires it. It’s a policy established by many lenders. Some require longer periods of time, such as 12 months. The concept is called “seasoning.”
No law states that. However, your contract might and it is binding.
It is underwriting guidelines that get you here. If refinancing and you have an FHA note the rule is you must have made not less than 4 payments to streamline and get a new note. Fannie & freddie require 6 months to so. Now if taking any cash out it requires 12 months Fannie & freddie and 6 month FHA
These are the rules
I am a mortgage banker in TN & KY
No law, just good underwriting standards.