How Soon Can You Refinance After Buying a Home?

Buying a home is a major milestone—and for many homeowners, refinancing is the next smart move. Whether you’re looking to lower your interest rate, reduce your monthly payment, or tap into your home’s equity, a common question comes up quickly:

How soon can you refinance after buying a home?

The short answer: it depends. The timing varies based on the type of loan you have, the kind of refinance you want, and your financial goals. Let’s break it down.

What Is Refinancing, Exactly?

Refinancing means replacing your current mortgage with a new one—ideally with better terms. Homeowners typically refinance to:

• Lower their interest rate

• Shorten or extend the loan term

• Switch from an adjustable to a fixed rate

• Remove private mortgage insurance (PMI)

• Access cash from home equity

While refinancing can be beneficial, there are rules around how soon you can do it after purchasing your home.

Is There a Waiting Period to Refinance?

In many cases, there’s no universal waiting period—but there are specific guidelines depending on the loan type and refinance purpose.

Conventional Loans

If you have a conventional mortgage:

• Rate-and-term refinance: You may be able to refinance immediately after closing, as long as your lender allows it.

• Cash-out refinance: Most lenders require you to wait six months and build sufficient equity before accessing cash.

  
  

FHA Loans

Federal Housing Administration (FHA) loans have stricter rules:

• FHA Streamline Refinance: Requires at least 210 days (about 7 months) from your first mortgage payment and at least six payments made.

• FHA Cash-Out Refinance: Typically requires 12 months of ownership.

VA Loans

For VA-backed loans:

• VA Interest Rate Reduction Refinance Loan (IRRRL): Requires 210 days from the first payment and at least six on-time payments.

• VA Cash-Out Refinance: Usually allowed after 12 months.

Why Refinance So Soon After Buying?

Some homeowners refinance sooner than expected for good reasons, including:

• Interest rates drop shortly after purchase

• Credit score improves significantly

• Home value increases due to market conditions or renovations

• Change in financial strategy, such as moving from an adjustable to fixed-rate loan

Even if refinancing early is allowed, it’s important to weigh the costs.

Don’t Forget About Closing Costs

Refinancing isn’t free. Closing costs typically range from 2% to 5% of the loan amount. Before refinancing, consider your break-even point—how long it will take for monthly savings to outweigh the upfront costs.

This is where careful coordination with your lender and title company matters.

How a Title Company Fits In

At Sun National Title, we play a key role in the refinancing process by:

• Conducting a thorough title search

• Ensuring the property title is clear

• Issuing lender’s title insurance

• Handling the secure closing process

Even though you already own the home, a refinance still requires title work to protect both you and your lender. Working with an experienced title company helps ensure a smooth, efficient transaction—especially when refinancing soon after purchase.

Should You Refinance Right Away?

Refinancing early can make sense, but it’s not always the right move. Ask yourself:

• Will I stay in this home long enough to recoup closing costs?

• Are the new loan terms meaningfully better?

• Do I have enough equity (if cash-out is the goal)?

• Am I financially stable enough to qualify?

A trusted lender can help evaluate the numbers, while a reliable title partner ensures the process stays on track.

Final Thoughts

So, how soon can you refinance after buying a home? Sometimes immediately—sometimes after several months. The key is understanding your loan type, your financial goals, and the true cost of refinancing.

When you’re ready to take the next step, Sun National Title is here to support you with expert title and closing services you can trust.