Refi Home Mortgage Loans – How Soon Can You Refinance An
Adjustable Rate Mortgage?

Homebuyers have several loan options Hence, purchasing a new
home has never been easier Individuals who cannot afford a down
payment or closing costs may take advantage of loan programs
that offer assistance Furthermore, those hoping to obtain a low
rate mortgage may consider a loan with an adjustable rate
Because of the initial low cost of adjustable rate mortgages,
monthly mortgage payments are also lower However, low rate
mortgages are short term To avoid an interest rate hike,
homeowners should refinance before rates begin to increase
Advantages of Adjustable Rate Mortgages
There are several advantages to accepting an adjustable
mortgage For starters, a low rate mortgage allows buyers to
purchase pricier homes, while maintaining an affordable monthly
payment Moreover, because of record low rates, homebuyers who
obtain an adjustable rate mortgage can enjoy falling rates
without refinancing their mortgage Thus, they avoid closing
costs and other fees
Adjustable rate mortgages are also ideal for individuals who
plan on moving in a few years Some people enjoy the stability
of living in one place for many years In this case, refinancing
for a fixed rate is a wise choice However, if you prefer the
flexibility of moving every three to five years, you will save
money with an adjustable rate
Pitfalls of Adjustable Rate Mortgages
While adjustable rates offer many attractive features, one major
drawback is that low rates are temporary If interest rates
continue to fall, you will not be subjected to the dangers of
these loans However, if rates begin to climb, so will your
mortgage payment Homebuyers who cannot afford an increased
mortgage are at risk of losing their home Thus, if your goal is
to remain in your current home for many years, refinancing for a
fixed rate will offer predictable mortgage payments
How Soon Can You Refinance a Mortgage?
Fortunately, home mortgage loans can be refinanced whenever you
like Some lenders suggest allowing the loan to mature at least
12 months However, if you detect a change in market trends,
refinancing shortly after purchasing your home is a smart
maneuver Those contemplating refinancing must be prepared to
pay additional closing fees Moreover, contact your current
lender and inquire of prepayment penalties

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