Refinance right after cashout refinance

[Jeff Cliff]

Hello,

Is it possible to refinance a cash out loan to a lower interest rate conventional loan immediately after doing the cash out? if not, minimum how long do I have to wait between two refis?

Thanks in advance for your response.

[Kevin Romines]

Can you go from a cash out refinance to a Rate & Term refinance and get better rates, yes you can, however you need to understand what you are doing to the company and loan officer that just closed your loan? 

All companies have what is called an EPO, Early Payoff Penalty, that is assessed to the company and loan officer that closed your loan. The investor of the loan will force that company and loan officer to pay back all fee's they made on that loan to the investor. So to be fair, I would either go back to the same company that closed that loan and discuss the options with them, or I would wait until after you have made your 6th payment. At that point there is no longer an EPO to the originating lender and loan officer. 

You can go down the street and refinance immediately, however in doing so, you are taking money from the loan officers family, that helped you in the first place?