Posted on: 01st Jan, 2014 11:14 pm
I need to know whether or not there is a Fannie Mae seasoning period for refinance? If yes, then how long is it?
Hi Guest,
As far as I know, there is no official seasoning period however most lenders may want to wait for 8-10 months and build some equity in the property. Once you have equity, you will be able to refinance the loan easily.
Take care
As far as I know, there is no official seasoning period however most lenders may want to wait for 8-10 months and build some equity in the property. Once you have equity, you will be able to refinance the loan easily.
Take care
Most lenders, not all, require 12 months seasoning for a CASH OUT refinance. After 12 months the appraised value is used to determine the maximum loan amount. Under 12 months, the CASH OUT mortgage amount is usually based on the LESSER of the appraised value or the purchase price.
However, there are lenders who have NO seasoning and use the appraised value under 12 months.
You can do RATE & TERM refinance anytime.
However, there are lenders who have NO seasoning and use the appraised value under 12 months.
You can do RATE & TERM refinance anytime.
Typically banks need you to make 4 payments before refinancing - this is not a requirement but you kind of stick it to the bank if you do it before then. If you refi before they will lose money on your transaction as their profits are built into the resale of your loan or the interest collected over time. It usually takes 3-4 months before they can bundle the loan and sale it - of course this isnt your problem but if you liked the work your lender did you should try to give them this much time............
Brian Barnes
ENG Lending
Nationwide Lender
Brian Barnes
ENG Lending
Nationwide Lender
