In short; as many times as you like! There are no limits on how many times you can refinance. Which means there are no limits as to how low you can push your monthly payment.
You can do it as many times as you’d like, as often as you like. You have the freedom and control to choose to refinance. There are of course some factors to consider to insure it’s in your best interest.
What closing costs will you incur?
While refinancing doesn’t including moving, it does include securing a new mortgage. This means there are credit scores to be run and paper to be processed. With all that work, you will be required to pay closing costs. If you recently paid fees on your last mortgage, it might not be financially beneficial to jump into a refi.
Will you to have to pay an early payoff fee?
Early payoff fees are different than a prepayment penalty. A prepayment penalty exists for the duration of your loan. It penalizes you financially for paying your principal early. An early payment fee typically only exists for the first three to six months of your mortgage. This fee is charged if you payoff the loan within the first few months.
In addition to closing costs, are there any other cash expenses you’ll need to cover?
Depending on when you refinance, your lender might require you to provide your pre-estimated property taxes. For instance, if you are refinancing your home from February 1 through April 10 or from October 1 through December 10, the first installment of your property taxes will be included in your loan estimate. This means you will need that cash in advance. However, it’s worth noting this is money you will have to give to Olympia in the long run.
Ultimately, how do you decide if a Refi is right for you?
Whether or not you should refinance always comes down to numbers. A lower interest rate could mean a huge savings in your monthly payment. But, if that savings doesn’t outweigh the closing costs, then refinancing could actually cost you money.
Curious if a refi could save you money? Give me a call today.
