Cash Out Mortgage Refinancing

by Mike B
(Vallejo, CA USA)

Cash Out Mortgage Refinancing - How soon can a homeowner refinance after buying a house? Hi Kate, I purchased a home (paid cash) two months ago that I'm renting to my daughter who eventually wants to buy me out.

I'm interested in getting a mortgage at the best rate possible. I'm thinking of getting a mortgage for 60% of the purchase price. Here are my four questions.

1- Is there a minimum time required to purchase a mortgage? A commercial broker told me there is a 6 month wait before I could apply for a mortgage.

2- Where would you recommend I go to get the best mortgage rates?

3- Would you get points with a lower rate or no points with a higher rate?

4- What are the mortgage mousetraps that I should look out for? Best, Mike

Kate Answers: Cash Out Mortgage Refinancing - How soon can a homeowner refinance after buying a house?

Dear Mike,

Homeowners without a mortgage discover a seasoning period is often required before they can get a new home loan. The period of seasoning varies depending on mortgage programs and the particular lender. Sometimes there is no seasoning, other times a year or so.

Because the waiting period differs among lenders this brings us to your second question, where to go to find the best deal.

Do this! Follow these 6 steps to organize your hunt for the best lenders and compare mortgage rates for the best deals. Remember to ask specifically about seasoning requirements for cash out mortgage refinancing.

Onto your third question about paying points. Instead of a higher interest rate over the term of the loan, a homeowner can pay a fee (points) to buy down an interest rate. Prepaying the long-term interest using equity or even cash can result in a lower payment.

But the question is will you be in the home long enough to re-coop the fees? Find out about mortgage closing costs here and how to calculate the break even point in your mortgage refi. Otherwise, your hard-earned money spent on points just makes a lender rich!

Take a moment to consider this fact! The lowest mortgage interest rates are not always your best deal. That's because saving money often carries a different meaning among homeowners. I hope you'll read this advice to one of my daughters about saving money.

And lastly, what do you do if you encounter problems with your mortgage? To borrow your words, you build a better mousetrap! Learn how to avoid mortgage approval pitfalls here.

Wish You Could Pay Off YOUR House?

We just read about Mike who owns his home free and clear. Many homeowners wish they could be in Mike's shoes, that is, they wish they owned a house without a mortgage.

Experiencing a mortgage free life might be easier than you think! Take a look at my newsletter!

Take a moment to bookmark Cash Out Mortgage Refinancing to your favorites so you can easily return in the future. Help me spread the word by sharing my website with your friends. Remember, all of my information is free!

Mike, if you still have questions about cash out mortgage refinancing, please write me at Ask Kate where every question is a good question.

Best Wishes,




Want to see what others are asking? Years in the making, get my answers here. Answers by Kate - Refinancing

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