Refinancing Tips · June 9, 2025
Mortgage Refinance FAQs: 15 Common Questions Answered
Everything you wanted to know about refinancing but were not sure who to ask. Here are the 15 most common refinancing questions answered clearly.
Q: How soon can I refinance after buying a home? A: For conventional loans, you can technically refinance immediately (day 1 after closing) with most lenders. FHA and VA have waiting periods: 210 days and 6 payments made for Streamline/IRRRL. However, financial logic usually requires waiting long enough to recoup closing costs.
Q: Does refinancing hurt my credit score? A: Yes, slightly and temporarily. A hard credit inquiry typically reduces your score 5-10 points. The impact is minor and recovers within 6-12 months of consistent payment history on the new loan.
Q: Do I need a new appraisal to refinance? A: Usually yes, for conventional refinances. FHA Streamline and VA IRRRL can often skip the appraisal. Some conventional refinances qualify for appraisal waivers through automated underwriting.
Q: Can I refinance if I am behind on payments? A: Standard refinances generally require you to be current. However, some programs (HARP-successor programs) and portfolio lenders can sometimes work with payment difficulty situations.
Q: Can I refinance a rental property? A: Yes. Investment property refinances follow different guidelines: higher rates (0.5-0.875% premium), maximum 75-80% LTV, stronger credit requirements.
Q: What is a cash-out refinance limit? A: Conventional: 80% LTV. FHA: 80% LTV. VA: 100% LTV. USDA: no cash-out option.
Q: Can I refinance after bankruptcy? A: Yes, after waiting periods: Chapter 7 — FHA/VA require 2 years, conventional requires 4 years. Chapter 13 — FHA/VA allow 12 months into the plan with trustee approval.
Q: How many times can I refinance? A: There is no legal limit on refinancing frequency. Financial logic limits it (closing costs, break-even periods). FHA Streamline and VA IRRRL have minimum waiting periods between uses.
For more complex questions specific to your situation, call HMS at 309-222-8286.