If i bought a house in aug2006 can i refinance now for a lower interest rate? i havent been here a year

Otelia
actually when i bought my house, the lenders told me i could'nt refinance for two years, but they sold my contract too someone else.i'm curious but, i have'nt asked my new mortgage company.if they sold my contract then why should'nt i be able to refinance?

Angelina
Regarding not being able to refinance for 2 years, it sounds like you have a 2 year prepayment penalty. It doesn't matter if the original lender sold your loan, the terms of the original note stay the same. The only thing they sold is the what is called the servicing of the loan. The "new mortgage company" is not actually a new company, but a mortgage servicer. Refer to your original note. It will outline the terms of your repayment to include the prepayment penalty.

Johnnie
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Katelin
They probably told you not to refinance because you have a prepayment penalty that will last for 2 years. Which means that if you do refinance you will have to pay a penalty that is equal to 6 months of interest. The contract you signed is the one that you will be used. It does not matter how many times the lenders have changed. But if you dont mind paying the penalty you can do a rate and term refinance which means you are only refinancing to get a better rate. They will not let you take any money out on a refinance until you have owned the home for more than 1 year.Just keep in mind... make sure that the new interest rate and amount of money you will be saving makes sense. You dont want to pay a $12000 prepayment penalty just to save $100 a month. It will take you 120 months (10 Years) to make up the difference. And to be honest with you, I doubt your credit situation has changed enough in the past 6 months to make a difference on the interest rate you got.

Douglass
The mortgage rates have not changed much in the last year...Because the loan was sold has nothing to do with refinancing. You may wish to wait a while unless your credit or financial circumstances change wher you need to refinance. I believe you will not save much on your monthly payment to change the loan...

Bo
Some lenders only require 6 month seasoning, and of course you have to have some equity in the house to be able to refinance as there will be all new closing costs associated with a refinance. Otherwise you need to wait until you have been in the home for a full year with 12 months mortgage history being reported so that the lender can see that you have made your mortgage payments in a timely fashion. The only problem I can see with a lender only looking for 6 months seasoning as opposed to 12 is that they might not let you use a new appraisal, you would have to go off the value of the home when you made the purchase so if the house has gained any equity you may not be able to use it.

Pauletta
i would wait about a total of one year so that you may be able to get a better rate so hang in there on that one

Harrison
All your original loan terms remain exactly the same, regardless of whether your loan has been sold to another bank. You wouldn't want them to raise your rate just because they bought your loan, would you? If you have a prepayment penalty on your current loan, it's unlikely that refinancing now would benefit you. What's changed since August? Is your credit better now somehow? Would you actually be able to get a lower rate? Do you even have enough equity to pay for another $4-5000 in closing costs?The only way to know if you have a prepayment penalty is to review your NOTE from your loan closing documents. You might even have a prepayment penalty rider to the note, so look for that also. Most charge 2 months interest as a penalty, though some are as high as 6 months of interest, which can be thousands of dollars. You can always bring those documents to a loan officer and see what they have to say. But I would be VERY cautious and skeptical about any loan offer that would require you to pay any prepayment penalty.

Jessia
Dont be stupid. You will just be waste money and not get that much better of a rate. The 2 year pre pay doesnt stop just because they sold your loan. The terms and conditions you are obligated to dont change with new ownership of the financing instrument.

Jarod
You should be able to, and I can help! Shoot me an email to msmith@premierloangroup.com, and let's chat!Marty

Gidget
If the lender told you that you could refinance in two years, then I'm guessing that you have a two year prepayment penalty. The penalty is usually six months interest. The terms of the loan didn't change because the loan was sold.Can you refinance? Yes, there is no law against it.Should you? Probably not. Unless your credit and income has improved drastically since Aug 2006, chances are that you will not qualify for a lower interest rate. Plus, you have that pesky prepayment penalty which will increase the new loan principal. In addition, until you've been on title one full year, lenders will use the purchase price as the value, not fair market value. So even if you got a great bargain on the house or home values have skyrocketed in your area, you can't take advantage until you've been there for one year.Good luck.