Refinancing "Resets the Clock" On Occupancy Requirement?

[Kyle Moore]

I refinanced my primary residence 2 months ago to take advantage of the great rates right now. I went from 4.875% to 3.600% and saving almost 300 a month.

I just went through my loan documents from the refi and found that the occupancy requirement is the standard 12 months. Prior to the refinance, I had been living in the house for a little over a year.

Is the new loan really going to require me to stay in this house an extra 10 months? Am I in deep trouble if I move to a new primary residence and the lender "finds out"? I am almost regretting the decision to refinance now because it seems that I am stuck here for another year!

[Michael Heisterkamp]

Technically yes, however most banks don't really care so long as you are paying your bills.  You will need to claim that property as your "primary residence" for tax reasons because the bank will cross reference for that with an automated system.  So long as you don't plan on selling either property within the next 12 months you will be fine.