Just bought house...lots of questions???
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My husband and I just bought a home, a long story, but we werent really ready to buy. We did cause the landlord was selling..so it was either buy or move out!
SOO, we went through a mortgage broker and he said basically to stick it out for about 6mo's making pymts on time and at that time we can re-fi and take cash out ( we have 60k in equity) to pay off VERY high interest rate car loans & some minor home improvements, which would I know would increase our mortage pymt some.... but we would still save money...So was our broker right? Is about 6 months a realistic time? Is our plan smart?
Just bought house...lots of questions???There are a few questions I would ask myself: 1. Why weren;t we put in a longer term loan that we could afford (Like the same one that you would supposedly be placed in 6 months). 2. Is your local housing market losing value everyday? If so you may not have the equity you have now in 6 months. Also, it costs you a lot of money to refinance. I think your broker did what is good for his pocket book... not yours.
Now to completely answer your question... the reason for the 6 months is because banks require a 6 months seasoning period between the date your purchased your home, and a potential refinance date, so that another appraisal can be pulled with a new value. It also give the buyer time to figure out what they can afford monthly. If you do have the equity in your home in 6 months.. it will cost you to refinance.. and I would go through my local bank as opposed to a broker this time. Believe it or not, you can negotiate your closing costs and the points that you pay. Most banks will not lend more than 80% of the value of your home for their best rate and not more than 90% of the value of your home for a higher rate. For example, if your home was worth 100k, the most you could take out a loan for and get a low rate would be 80k, or 90k for the higher rate option. I hope this helps.. good luck to you.
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