It is possible to refinance most loans within three months, but in many cases it won’t make sense, even though you are paying a lower interest rate. That’s because you must again pay the closing costs on your home, and that eats up potential savings. If your mortgage includes a prepayment penalty, that’s another several thousand dollars you’re immediately out-of-pocket.
Consider short term costs
If you have an FHA loan, you must make a minimum of six payments before you can refinance for another FHA loan, known as streamline refinancing. Consider the short-term costs versus the long-term benefits to decide whether refinancing makes sense for you.