How long till I can refinance a property?

[Matthew Otero]

So I’m purchasing properties in Indiana right now and working with smaller banks and want to get my capital out of the property. I’m just not sure if there is a standard waiting period before I can refinance these investments property mortgages. I think I read somewhere it was 18 months but I’m not sure. Also does it vary in different market, is it state specific or just depends on the bank?

[Sam Horton]

@Matthew Otero The general rule of thumb in Massachusetts is 6 months. My understanding is that you as the owner can refinance whenever you want. If you go through the same lender, they will likely give you a timeframe. This timeframe is so that they receive their commission on the initial deal. Some lenders can actually end up paying a fee if their clients refinance too soon. All that being said, obviously you'll want to make sure it appraises on the refi for a higher market value as well.