How long do you have to wait before you can refinance a house?

Johanna
i have a 2 bedroom home I bought in December and I wanted to take some money out on a refinance or is it better to take a home equity loan? Thank you for your help...

Berniece
A home equity loan would probably be better because a refinance will probably cost you at least $2, 000.00 in closing costs (perhaps as much as $5, 000.00) whereas a home equity loan usually costs around $500.00 for the processing fees. It's not worth it to refinance a house within the first two to three years unless you can get an interest rate that is at least one full percentage point below your current mortgage interest rate.

Alexia
Generally you need to wait at least 12 months before a lender will consider a higher value for your home than the original purchase price. The only way it would make sense right now is if for some reason you put a large down payment on the property when you bought it and for some unforseen reason needed to get it back right away. If it's a smaller amount you want to get out of your equity then it probably makes sense to take out an equity line and pay a higher rate rather than pay higher closing costs to refinance the whole mortgage.

Margaretta
Terry, that all depends on your whole financial picture. You can refinance anytime, taking money out depends again on your financial picture and what the appraisal comes it at. Taking a line of credit or equity loan, similar products that do different things. Why don't you call your current lender to see what programs they have, and also check with a couple of other lenders in the area. Most lenders have had some big changes in the programs, so if you dont' understand something by all means ask questions until you do.

Carin
First of all your house would have to have appreciated to have any equity or you would have to have had a large down payment. It depends on what part of the country you live in. You have only owned for 6 months. Unless you live in area where RE market is still climbing at fast rate you probably don't have that much equity. Most typical homeowners think their home is worth more that it really is. Good luck but I think you need to wait a year or two.