Can you refinance with in 7 months of buying a home?
Yes you can, however there are some things to consider. First, you should check to make sure that there are no pre-pay penalties on your existing mortgage. Most 30 year fixed loans do not have one for the borrower, hoever many hybrid, ARM and interest only loans carry a 1 year or 3 year pre-pay. The next consideration would be what percentage of the purchase price did you finance when you bought the house? Many times home buyers will finance 90% - 95% of the purchase price and pay PMI assuming that they will be able to refi the loan and get the PMI off by showing a higher appraised value on the home. For example, you buy a house for $100,000 (I know, that doesn't happen anymore) and you have a mortgage for $90,000, making your loan to value (LTV) 90%. If you were to have the house appraised by a commercial appraiser 7 months later, you may be able to get them to show a current market value of $120,000, which makes your $90,000 loan only 75% of the new market value. This would mean that you would no longer have to carry PMI since the threshold for requiring PMI is 80%. You have accomplished one very important goal, however you need to make sure that the lender you work with will allow a refi based on current market value. Many of them will make you wait at least 12 months before you can use anything other then your purchse price as the market value. More and more are now allowing current market value within 12 months as long as you are living in an area of rapidly increasing home values. Either way, there is nothing which can stop you from being able to refi 7 months after your purchase. In fact, it is done quite often these days. Good Luck