The maximum and minimum times to refinance with cash-out can vary depending on several factors, including the lender’s requirements, your credit score, and the amount of equity you have in your home.
In general, most lenders require that you have at least 20% equity in your home before you can refinance with cash-out. This means that if your home is worth $300,000 and you owe $240,000 on your mortgage, you would have $60,000 in equity, which is 20% of the home’s value. Some lenders may require even more equity, up to 25% or 30%.
The maximum amount you can borrow with a cash-out refinance is also limited by the amount of equity you have in your home. Lenders typically allow you to borrow up to 80% to 90% of your home’s value, depending on the lender and your creditworthiness.
As for the minimum time to refinance with cash-out, there is no set rule. However, it’s generally recommended that you wait at least six months to a year after taking out your original mortgage before refinancing. This gives you time to establish a payment history and build up some equity in your home.
Ultimately, the decision to refinance with cash-out should be based on your individual financial situation and goals. You should consider factors such as your credit score, interest rates, closing costs, and the amount of equity you have in your home before deciding if it’s the right choice for you