How Early Can You Refinance?
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Look at the Equity.
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A rule of thumb for mortgage refinancing is that it can only occur when a consumer has a minimum of 20 percent equity in his property. If a consumer put down 20 percent upon purchase, he has an option to refinance as soon as he wants.
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Consider Cost of Refinancing.
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Refinancing a home will come at a cost to the consumer of at least 3 to 4 percent of the total. There are also closing costs associated with the refinance of a property.
Bottom Line
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Refinancing is typically an option for a consumer to get a lower rate of interest or to tap into the equity of the property for major home improvements. Consider the reason for the refinance, but if 20 percent equity isn't held, a refinance won't happen for awhile.
References
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