Time Restriction Before Refinance Can Occur

I'm not aware of any restrictions per se, but many states are looking at the predatory lending practice known as "flipping" with regard to home lending. Flipping occurs when a loan is refinanced within a short amount of time from the previous financing and all the fees associated with the refinance are rolled into the new loan, reducing equity. In states that have passed laws prohibiting or restricting "flipping", you will often have to show a tangible net benefit to the borrower that results from the refinance transaction.

First published on BankersOnline.com 12/1/03