You can refinance the next day, however it should be 6 months if you are using the same LO. If it is shorter, the LO would have to give back his commission, if he is using the same lender

It depends if there is a pre payment penalty and if the new mortage has a seasoning requirement. Most will have a waiting period but some may be as fast as they can get a new appraisal and process it

Don't know so I'll go with what Bob Betel said.

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

My first question would be is WHY?

I have no clue, Inna. Why would someone want to refi that quickly? Maybe a better solution is to recast a loan. We have lots of great lenders here in the Rain includin, George Souto and Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi and Joe Petrowsky who could provide an answer.

I'm going to have to wait for answers Inna. The subject has never come up for me and I do not have a favorite AR lender whom I could tag that I've had experience with.

Too many AR lenders to mention just one.  
I am working with Tom Parke, Mason McDuffie Mortgage.  He and his team are the BOMB!  

The road to success is paved with money. Refinance of a conventional loan immediately after closing stimulates that swirling image of money flushed.

Fortunately, there are many finance instruments available if one knew this was a possibility. Sometimes life interrupts our best intended plans, often at a very high cost.

You can refinance your conventional loan the very next day as long as it is not a cash-out refinance.  A cash-out refinance has a 6 month waiting period from the close of escrow before a cash-out refinance can be completed.  Typically it does not make sense to refinance so soon after a loan closing as you would incur all of the same closing costs all over again.  So.....yes it is possible to refinance after the close of escrow, but does it make sense in your situation is the question?  Chad Vogel

Chad Vogel is hands down my favorite AR lender Inna Ivchenko and hopefully he can answer your question.

I haven't had this come up in a long time but when it did, it had to be seasoned first. And, of course, if there is a prepayment penalty, there is that to consider. Perhaps Caroline Gerardo can help...she is also in Cali.

BUT...why would someone want to do that?

How fast?? - Immediately. It can be immediately after closing. As to why???.  There are applications where this is a very handy technique but such applications do carry some risk and are not typical for a realtor run into and such techniques are beyond my comfort level.

This immediate refi tactic was used by investors in the Vegas area in 2004-2008 approximate time frame. Builders had overbuilt and had investors/speculative buyers not performing on homes once they were completed simply because the market was tanking and the think was - the home is not worth the price on the P&S Agreement that I signed 6 mos or a year ago (they were signing agreements well before construction had even begun) so I'm not closing. So here's where the two loan strategy came into play.  Some savy investors knowing about the above situation stepped in and approached these builders with finished unsold product stacking up from too many buyers not closing on their "new" homes.  The investor offers the builder 80% of asking price (80% below market)  - perhaps takes 2 or 3 (or 5 or 10) of these problem homes off the builder's hands. The investor either buys them all themselves or has a pool of buyers all buy, each with an 80% loan on the home they are getting a 20% discount on. So they are putting 20% down on their discounted purchase. Then at closing they immediately do a cash out refi into an ARM or even negative am loan. On the refi they get their 20% down payment back and have a monthly payment that's below market rent. They rent the brand new no maintenance needed home out and get a positive cash flow with "effectively" no money out of pocket (well 20% went out but it came back in often even able to get more than their 20% if the appraisal came in high enough).   They then hope and pray that the market appreciates so the scheme doesn't crash because it will crash if the market depreciates for too long - those low or negative am loans only last 2 or 3 years. So there's one example of why someone may want to an immediate refi at closing.

Anyway, although that specific scenario is not relevant in most of today's markets, there are ways to  minimize effective cash out of pocket even in today's market using the immediate refi technique. Not so much for owner occuppied but there are uses for investors.

Not sure but I use Richard Advani with Wells Fargo in LA.

as Bob Betel wrote...spot-on!

We have too many AR mortgage loan officers here in the Rain to mention them all. Find one licensed in your state and get the correct information. Good luck! 

I am sure that it depends on the contract terms.

Joe Petrowsky 

That's a great question for a licensed mortgage broker.

Parked and learning.

Never had this scenario happen in my practice.

Too mant Active Rain Lenders to mention just one. 

Depending on the scenario, there are no restrictions. Pre-Payment Penalties (PPP's) are rare nowadays, but we still need to account for the possibility that a PPP exists.

The math has to make sense in order to justify a "Borrower benefit" to get the refinance approved (i.e. if the Borrower just paid +/- $4K in closing costs and wants to do it again, there really needs to be a clear benefit for doing the new loan...especially if additional fees will be paid by the Borrower on Loan #2).

Looks like several quality Lenders have already weigned in, so I'll keep my response brief.

It bears noting that Lenders typically have to pay back their commissions if the Borrower makes less than 6 monthly payments. As brutal as it sounds, it is true. It is called an Early Pay Off (EPO) and is written into the contracts that Lenders have with their Loan Officers. 

I'm sure the other Lenders on this thread would agree that if a new loan needs to be done within 6 months, it would be a nice gesture to let the original Lender get the new loan done.  It's better to have done the work twice and gotten paid once, than to have done the job once and not received payment.

it looks like Chad Vogel pegged this one first....

Have no idea and no favorite lender.

Parked are waiting 

I think within 6 months with no fees

You can refinance immediately in MOST cases - there are cash out restrictions for cash out refinances, but rate/term refinances, you can do immediately

BUT - many lenders will be penalized if a loan is paid off within 6 months of it being originated, so if you're working with a lender you like, just know if you do a loan with them, then immediately refinance it, it will likely hit them with an "early pay off (EPO)" fine.

My favorite AR lender is me, but I am extremely biased ; )

Start the bones the day before you close. I can close in 11 days

I've never done it, my rates are way low.  :) 

Usually a cash-out refi has a 6 month seasoning requirement. There are several factors to consider and different lenders may have different overlays as well. Be sure to check on a pre-payment penalty (though most loans don't have them these days). As Bob mentioned, the LO could potentially have to pay back commission. 

I think it's 3 months Inna....

I don’t believe there are any limitations .

6 months with same lender.

Immediately.

In a perfect world, the next day.

My fav lender is not on AR.

The simplest answer is 6 months ... however, nothing prohibits someone from refinancing immediately after closing.

There's a good chance that the original Lender would forfeit any/all commission earned on that first transaction, if done sooner than 6 months.  That said, I, along with others here, wonder what are their reasons for refinancing so quickly?

From my viewpoint as a LO, I'd hope to have been made aware of the borrower's thoughts and reasons for taking this action PRIOR to closing on the first loan.  Depending on the scenario they face, a refinance could be a wise move or ill-advised ... and it could also change the financing options that make the best sense for the first transaction/loan.

There's a HUGE need for a thorough conversation here ... with all information out available to both client and LO ...

If you have further questions, Inna Ivchenko ... feel free to give me a shout.  So much depends on the particulars of the specific client.

Good Luck!

Gene 

I bought my house before selling my other one.  The DAY I closed my primary, I refinanced my new home.

I had one 2 years ago and it was 6 months.

Good question and you got some good responses!

Some lenders will ask for a fee to cancel a mortgage within a certain time period and some lenders could care less. If it's a cash deal and now the buyer want to re-fi to get some of his/her money back, it really should not be any problem.  Call the lender , if one is involved......