Q&A: How long do you have to pay on an existing mortgage before you refinance for a lower interest rate?

Question by Heather A: How long do you have to pay on an existing mortgage before you refinance for a lower interest rate?
I have not yet bought a home but I am curious what effects refinancing. Is it based on how much equity you have built?

Best answer:

Answer by EDDie
You should read your loan documents to find any clause that limit the time before you can refinance. The average is 2 – 3 years without penalty. You can still refinance before the 2 year period but you will incur penalties.

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