When you refinance your mortgage, you replace it with a new one. Sometimes, this allows you to get a lower rate or monthly payment, or it might also come with cash back, which you can use to cover home repairs or any other expense you might be facing.

Mortgage refinancing isn't for everyone, though. In fact, there are some waiting periods that loan programs enforce before you can proceed. if you think refinancing your home loan makes sense then start by answering a few simple questions to see what rate you're eligible for. 

How soon can you refinance your mortgage?

Are you considering a mortgage refinance? Here's how soon you can do it for each type of home loan.

Conventional loans

If you want to refinance your conventional loan to a new one with a different rate or term, there's no waiting period, and you can do this as soon as you'd like. Just understand: It may cost you.

Some lenders impose prepayment penalties if you pay off your loan too soon after taking it out. These usually cost 1 to 2% of the outstanding loan amount, so on a $300,000 loan, you could owe up to $6,000.

Cash-out refinances, which allow you to take out a new, larger-balance loan and keep the difference in cash, are a different story. With conventional loans, you'll need to have had your first loan for at least six months before a cash-out refinance is an option.

VA loans

VA loans, or loans guaranteed by the Department of Veterans Affairs, come with a 210-day waiting period — meaning you can't refinance until 210 days after the due date on your first mortgage payment. You'll also need to have made at least six monthly mortgage payments and be current on your loan (i.e., not behind on payments) to qualify. 

FHA loans

FHA refinance waiting periods depend on the type of refinance you're seeking. With a standard rate-and-term refinance, you'll need to wait at least 210 days from your original loan's closing date. 

If you're looking to take cash out with your refinance, you'll need to have lived in the home for at least one year and made on-time mortgage payments for the last 12 months.

USDA loans

USDA loans have some of the longest waiting periods of all. With these loans, you'll need to have had your mortgage for at least a full year before you can refinance. This waiting period applies to all USDA loans, regardless of the specific type. 

Other considerations

Remember that lenders have requirements, too. The waiting periods noted above are simply those for the loan programs themselves. The lenders who issue them may have additional requirements you must meet before you can qualify for a mortgage refinance loan. 

If you're refinancing with the same mortgage lender, you can usually expect longer waiting periods and potential prepayment penalties. Because of this, it's always important to shop around before you refinance. Mortgage refinance rates, terms, requirements, and waiting periods can vary quite a bit from one mortgage company to the next.

Article By: Aly Yale, CBS News