In all actuality a borrorwer can complete a mortgage loan refinancing as soon as a mortgage servicer (lender) will give said borrower a loan. Though mortgage servicers follow guidelines that change nearly every day. Most mortgage lending companies will not allow a refinancing of a mortgage loan until the loan is 12 months old. Though, some mortgage providers allow for a refinancing 6 months after the original home mortgage loan closes.
Why do the mortgage providers follow the guidelines? This is to stop real estate investors from purchasing a home that is in need of repair, repairing the property and then refinancing the home to cover the cost of the repairs and original cost of the mortgage loan. But, all real estate owners, investors and everyday citizens just purchasing a house to make their home must follow the same regulations.
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Prepayment penalties can hurt if you refinance too early. Some mortgage loan plans include prepayment penalties which force the borrower of the home mortgage loan to pay a specific amount if the property is payed off too quickly. Usually the amount of time to refinance a home mortgage loan and have to pay a prepayment penalty is anywhere up to five years. The amount of money required to when paying off a home mortgage loan with a prepayment penalty can be a percentage of the loan balance or up to 6 months worth of interest.