How Long Does It Take To Refinance a House?
It typically takes about six weeks to refinance a mortgage, though there are streamlined refinance options that can wrap up faster. Understanding the factors that speed up or slow down the refinance process can give you more control over how long it takes to refinance your house.
How long does a refinance take?
The average time to close a refinance loan is 43 days, according to data from ICE Mortgage Technology. Refinances for FHA loans backed by the Federal Housing Administration (FHA) or VA loans backed by the U.S. Department of Veterans Affairs take longer to complete than conventional loans.
How long it takes to refinance a house by loan program
| Refinance program | Time to close |
|---|---|
| Conventional loan | 42 days (6 weeks) |
| FHA loan | 46 days (6.5 weeks) |
| VA loan | 40-50 days (6-7 weeks) |
Factors that affect the refinance process timeline
Important factors that affect how long your home loan refinance will take include:
- Knowing why you want to refinance
- Refinance paperwork preparation
- Electronic verification availability
- Appraisal delays
- Type of refinance
- Lender availability
Knowing these factors can prevent unnecessary delays and get you to the closing table faster.
Learn more about the different types of refinance loans you could get.Ways to shorten how long a refinance takes
You have some control over certain aspects of the mortgage refinance process. You can speed up your refinance if:
Your lender offers electronic income and asset verification. If you work for a large employer and bank with a national lender, it may be possible to electronically verify both your income and asset balances. That will help prevent last-minute holdups for updated statements or pay stubs before your closing.
You qualify for an appraisal waiver. Fannie Mae and Freddie Mac offer appraisal waiver options if you have enough equity and are refinancing to reduce your monthly payment without tapping extra equity.
You’re eligible for a streamlined government-backed refinance loan. If you currently have an FHA, VA or USDA loan, you may be eligible for an FHA streamline, a USDA streamline or a VA interest rate reduction refinance loan (IRRRL). An added bonus: These programs don’t usually require a home appraisal or income documentation.
You have your financial paperwork ready. In addition to the pay stubs, W-2s and bank statements you provided when you bought your home, dig up your closing papers and a current mortgage statement for the home loan you’re paying off.
You don’t change your refinance purpose. If you suddenly decide to tap equity halfway through a rate-and-term refinance, your lender will have to revise your approval and most likely order an appraisal. Know exactly what your financial goal is before applying for a refinance.
Refinance delays beyond your control
Your refinance may take longer if:
Your home appraises for less than you expected. Your loan-to-value (LTV) ratio measures how much of your home’s value you borrow, and has a big influence on the interest rate you receive. If the appraisal comes back lower than you expect, your refinance closing costs and interest rate could go up, too. However, ask your lender about steps you can take to dispute the value.
Your lender is backlogged with refinance requests. This often happens when rates suddenly drop as homeowners overwhelm lenders with new refinance rate lock requests.
How do you refinance a house?
Though refinance requirements depend on your loan program and lender, there are six basic steps to refinance a house:
- Determine your home equity amount. You can calculate your home equity by subtracting your mortgage balance from your home’s value.
- Shop around for the best deal. It’s a good idea to use a refinance rate comparison tool or gather loan estimates from at least three to five lenders. One caveat: Interest rates change daily, so collect all your quotes on the same day to make apples-to-apples comparisons.
- Fill out a loan application. The more accurate you are on your application, the less chance there is for delays during the refinance process. Decide if you want to roll your closing costs into your loan or pay them out of pocket before completing your loan application.
- Provide documents quickly. Look out for calls, emails or texts from your loan officer or loan processor to avoid holdups for financial documents.
- Schedule your appraisal as soon as you can. If your refinance requires an appraisal, clean and spruce up your home ahead of time. The longer you wait to book the appraisal, the longer it will take to refinance your house.
- Plan ahead for your closing. Last-minute loan amount or program changes may result in an extra day or two wait while the lender revises the loan terms. Review your closing disclosure to verify the numbers are right, and then close on your refinance.
Frequently asked questions
There is no legal limit on the number of times you can refinance your home loan. However, some mortgage lenders impose a six-month waiting period before allowing you to refinance again.
Typical closing costs for refinance include loan origination, appraisal and credit report check fees, which generally cost around 2% to 6% of the loan amount.
If you’re refinancing your primary home, your loan will be funded after your three-day “rescission period” ends. Federal law requires lenders to give you three extra business days after signing to cancel the transaction. Once that period ends, your refinance loan is funded. There is no rescission period for a second home or investment property refinance.
Some lenders offer electronic closing options, which can take a matter of minutes. However, it’s best to set aside an hour or so to review the documents and ask any questions.
The minimum credit score to refinance varies by the loan program and lender. FHA loans allow you to refinance with a credit score as low as 500. Conventional loan lenders are more strict, with a minimum 620 credit score requirement.