I Waited Two Years to Refinance and Regret Every Month of It

Just felt like refinancing so soon seemed weird.

That let’s wait a bit ended up costing us over $10,000. 

The question of how soon can you refinance a mortgage haunts me because I waited way longer than I should have.

Got my house at 6.2% interest rate. My wife and I were just happy to finally own something instead of renting.

The Excuses I Made For Two Years

First excuse – we just bought the house, it’s too soon. Turns out how soon can you refinance a mortgage is usually six months for most conventional loans. We hit six months in July 2022. Could’ve started the process then. Didn’t.

Second excuse – closing costs are too expensive. But we would’ve saved $185 a month with the lower rate. Would’ve broken even in like 25 months. After that it’s pure savings. But I convinced myself closing costs weren’t worth it.

Third excuse – rates might drop even more if we wait. This one was really dumb. I kept waiting for rates to hit some magical number that never came. Meanwhile rates started going back up and I missed the good ones completely.

Fourth excuse – our current rate is fine. Yeah it was fine. But fine isn’t the same as good. Could’ve had a better rate and saved money. But I convinced myself our rate was okay enough.

All these excuses added up to two years of not refinancing when I should’ve. Two years of paying more interest than I needed to. Two years of higher monthly payments. I was an idiot.

What Finally Made Me Do It

I was confused. How did he get 5.1%? Rates weren’t that low anymore. Chris said he refinanced in September 2022 when rates briefly dipped. Locked in that 5.1% and has been saving money ever since.

That conversation made me so mad at myself. Chris and I bought houses at the same time. He refinanced when he should’ve. I kept making excuses. Now he’s way ahead of me financially just because he actually did something when I didn’t.

The Reality Check on How Soon You Should Refinance

I started calling lenders the next day. Asked them all the same question – how soon can you refinance a mortgage after buying? Every single one said six months for conventional loans, sometimes less depending on circumstances.

One loan officer actually asked why I waited so long. I didn’t have a good answer. I just said I thought I needed to wait longer. She said most people refinance whenever rates drop significantly, usually within the first year or two of buying. Waiting doesn’t help anything unless you’re trying to improve your credit score or something.

What I Actually Lost By Waiting

Rates had gone up so much that I couldn’t even improve my rate anymore. My wife and I just stared at each other when the loan officer told us. All that waiting and we missed our chance completely.

Chris locked in 5.1% in September 2022. I could’ve gotten something similar if I’d refinanced then. Instead I waited and now rates are higher than when I bought the house. Literally the worst possible outcome.

What I Should’ve Done Different

Should’ve refinanced in July 2022 as soon as I hit the six month mark. Rates were good, we qualified, closing costs would’ve been worth it. 

Should’ve actually researched how soon can you refinance a mortgage instead of just guessing. It took me five minutes to Google it in January 2024. Could’ve done that in June 2022 and saved myself all this grief.

Should’ve stopped waiting for perfect timing. I kept thinking rates would drop more if I waited. Instead they went up. Can’t time the market perfectly so don’t try.

My Brother Made the Same Mistake

We both sat there on the phone feeling dumb together. Two brothers, both homeowners, both too lazy to refinance when we should’ve. Both pay way more than we need to for the rest of our mortgages.

At least I’m not the only one who messed this up. Doesn’t make it better but misery loves company I guess.

What I Tell People Now

When someone asks me how soon can you refinance a mortgage, I tell them six months but check with your lender. Then I tell them don’t wait like I did. If rates drop after you buy, refinance as soon as you can.

Don’t make excuses about closing costs. Do the actual math. If you’ll break even in two or three years, it’s worth it.

Don’t wait for perfect timing. If rates are better than what you have, lock it in. They might go lower, they might go higher. Nobody knows.

Listen to your spouse when they tell you to do something financial. Mine was right for two years and I ignored her. Don’t be like me.

And don’t assume you know stuff without checking. I thought I needed to wait longer than six months. I was wrong. It took five minutes to find out the real answer but I didn’t bother checking until it was too late.

Where Things Are Now

Still stuck with my 6.2% rate. Rates haven’t come back down enough to make refinancing worth it. Maybe they will someday, maybe they won’t. Either way, I missed my chance in 2022.

Chris is still saving $265 a month compared to me. Will keep saving that forever unless one of us refinances again. He made the smart move, I didn’t.

My wife brings it up sometimes when we’re talking about money. Not in a mean way, just as a reminder of why we should act on financial stuff instead of waiting. She’s right. This whole thing is a reminder I’ll carry forever.

The question of how soon can you refinance a mortgage has an answer I learned too late. Six months usually. But the real question is how soon should you refinance, and the answer is as soon as it makes financial sense. Don’t wait. Don’t make excuses. Just do it.

I didn’t, and now I’m paying for it. Literally paying for it every single month for the next 28 years. Learn from my mistakes and don’t wait like I did.