Typical waiting periods
Rules change, so treat these as general guides and confirm with your loan consultant:
The clock usually starts from your current loan's closing date or first payment, depending on the program. Your closing documents show both dates.
- Conventional rate-and-term: often no required wait
- Conventional cash-out: usually about 12 months
- FHA Streamline: usually 210 days and six monthly payments
- VA IRRRL: usually 210 days and six monthly payments
Why it can still make sense
If rates fell soon after you closed, waiting a year means paying the higher rate for months longer than you need to. The key question is the same as any refinance: will you save more than it costs?
With a typical lender, closing costs can take years to earn back. CapCenter refinances come with ZERO Closing Costs (restrictions apply). With no lender closing costs to recoup, you can refinance when rates fall, even if your loan is new.
Run the numbers first
Compare your current principal and interest payment with the new one. Then think about how long you expect to stay in the home. A loan consultant can show the monthly difference and the total interest side by side, so you can see whether the savings are real or mostly come from a longer term.
Check your loan for a prepayment penalty
Most standard home loans today have no prepayment penalty, but read your note or ask your servicer to be sure. If there is one, add it to your costs before deciding.
Your current lender and early payoff
Some lenders have agreements with investors that cost them money if a loan pays off early. That is between the lender and the investor, not you, and it doesn't stop you from refinancing with another lender.
What you'll need
An early refinance is a full new loan, so expect an application, a credit check and current documents. Many of the documents from your last loan can be updated rather than rebuilt.
- Recent pay stubs or tax returns
- Recent bank statements
- Your current mortgage statement
- Your homeowners insurance details
Watch out for a reset term
If you refinance into a new 30-year loan, you add the months you've already paid back onto the end. On a young loan, that's usually only a few months, but it's worth noting when you compare total interest.
To avoid adding time, you can choose a shorter term or keep paying the same amount you pay today. Either way, the extra goes to principal and keeps your payoff date close to the original.
