how soon can i refinance a house i just bought at fair market value?
by Mortgage Rates on Monday, November 22nd, 2010 | 4 Comments
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One year. This has always been the rule. We use sales price or aquisition cost- which ever is less for the first year.
That is true, one of the reasons there is a housing financial crisis is because a lot of real estate investors found below market value properties, rehabbed them and during the holding period refinanced them or sold them for a higher price.
The banks and other lenders now require a waiting period before a refinance or sale is approved. Fannie Mae and Freddie Mac were suppose to reduce the amount of time that a refinance or sale could take place after the initial purchase and resale can take place.
Google Fannie Mae and Freddie Mac resale policy for possible time frames that you might refinance or sell the property you are speaking of.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”
About a year or so. The only good reason to refinance is to save money or do remodeling. If you are trying to save .50 percent on the interest, it is a waste. It will take you several years until you have broken even because every time you refi you pay closing costs again.
Apparently what you are trying to ask is how can you refi and pull equity out as additional cash. You’ll have to meet the lender’s standards for income, credit, etc., have a full appraisal done and they will only lend up to whatever limit they choose – typically 80% of FMV. You are not going to be able to borrow 100% of FMV no matter what you bought it for.
The underwriting standards are now close to what they should have been all along. If they’d been that way, we would not be experiencing the Great Recession right now.