@Anonymous wrote:
In my state (TN) we can refi every 7 mos if we want, I don't know if that's a national thing... purchased home 13 mar 2014, 1st refi sep 2016 new refi May 17 (1st refi for cash to do home improv..second for lower interest, no cash but I have 49k equity). It was explained to me the laws on "constant" refis had changed so folks couldn't avoid making payments (because just like when you purchase..you get to "skip" a months payment)
Interesting...I have never heard of any restrictions regarding the time between refi's. I'm in Fl and have seen refi's done more quickly than that so it could be something to do with your state's statutes - who knows...
I will say a couple of comments:
- usually the lender uses the purchase price during the first year after you close rather than a new appraised value. Sometimes that benefits you but most of the time it doesn't benefit the borrower (in a rising market)
- It costs money to refi every time you do it. Even if the lender "waives" their own fees, there are other fees that are not waived (title fees can be reduced, government gets their fees regardless)
- the "skip a month for your payment" is really a misnomer. The lender collects the interest due from the date you sign the note to the end of the month (pre-paid interest). The next payment is skipped because the only time interest is pre-paid is on the closing date, the rest of the time the interest is paid in arrears. So, yes, you pay interest on your mortgage loan for each and every day the loan is outstanding. The skip a month portion is strictly to move from the collection of interest in advance on the day of closing to the normal time period. EG When your payment is due on the first of July, you are paying for Junes interest plus a very small portion for principal. I am talking about the lions share of mortgages. A few, like HELOCs, may have a different payment schedule that runs from the closing date for 30 days and doesn't require a payment due date of the first. Check your note.
