No one should refinance unless the time frame it takes to recapture the closing costs on a refinance is sooner than the time in which they plan to sell the home. The most common form of determining how quickly you can recoup your money when refinancing is performing a “cash-on-cash” calculation.

How long do you have to live in a house after refinancing?

How long after refinancing can you sell your house? You can sell your house right after refinancing — unless you have an owner-occupancy clause in your new mortgage contract. An owner-occupancy clause can require you to live in your house for 6-12 months before you sell it or rent it out.

Can I refinance a home I no longer live in?

When you refinance the mortgage on a home you no longer live in, the loan is classified as a non-owner occupied mortgage. The terms for a non-owner occupied loan are different than for a mortgage on your primary home. You are also required to have more equity in your home to qualify for the refinance.

Why do I need a 10 year refinance?

The main reason for any homeowner to refinance to a 10-year fixed mortgage loan is to eliminate a mortgage more quickly and save money on interest payments. For example, let’s say you originally took out a 30-year mortgage and you decide that rates are favorable enough now that you might be able to get a better rate by refinancing.

When does it make sense to refinance your mortgage?

Does It Make Sense to Refinance if a Home Has Dropped in Value? You know that you can save a significant amount of money each month by refinancing your existing mortgage loan to one with a lower interest rate, but you only have 10 years remaining on your mortgage loan.

Is there a 10 year refinance with no closing cost?

Additionally, Star One Credit Union offers a special no closing cost option for 10-year mortgage borrowers that’s pretty attractive overall. If you currently have a mortgage through this lender, you can also look into loan modifications to achieve more favorable repayments terms that link up with your financial goals.

How much does it cost to refinance a 30 year fixed rate mortgage?

For a 30-year fixed-rate mortgage on a $100,000 home, refinancing from 9% to 5.5% can cut the term in half to 15 years with only a slight change in the monthly payment from $805 to $817. However, if you’re already at 5.5% for 30 years ($568), getting, a 3.5% mortgage for 15 years would raise your payment to $715. So do the math and see what works.