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Question about Mortgage refi.

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I have refinanced a couple of times and each time there has been a 90 day period from closing during which another refinance is not possible. Why is that? Is that restriction by law or is it related to broker commisions?

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View PostI have refinanced a couple of times and each time there has been a 90 day period from closing during which another refinance is not possible. Why is that? Is that restriction by law or is it related to broker commisions?

 

 

1) because you locked into a rate

 

2) your mortgage banker or broker made a forward commitment to sell your conforming loan to another party at your locked-in rate 90 days out.

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View PostI have refinanced a couple of times and each time there has been a 90 day period from closing during which another refinance is not possible. Why is that? Is that restriction by law or is it related to broker commisions?

 

 

There is not a 90 prohibition, but Fannie and Freddie both have a 90 "flip rule" which may apply, plus, your broker will have to payback his YSP.

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View Post1) because you locked into a rate

 

2) your mortgage banker or broker made a forward commitment to sell your conforming loan to another party at your locked-in rate 90 days out.

 

Dont they sell your loan right away, why wait 90 days. To me, the not being able to refi withing 90 days contradicts a no pre payment penalty. If I want to refi within 90 days, I should be able to, the loan will be paid in full by the new mortgage.

 

View PostThere is not a 90 prohibition, but Fannie and Freddie both have a 90 "flip rule" which may apply, plus, your broker will have to payback his YSP.

 

Can you explain a bit about the 90 day flip rule?

 

View PostCan you provide some lenders?

 

I pretty much call a bunch of places, starting with the current bank that holds the loan.

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