How Long Before You Can Refinance a House?

Written by Banks Editorial Team
3 min. read
Written by Banks Editorial Team
3 min. read

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Did you recently purchase a home and are looking to refinance? Maybe you want to get a more affordable monthly payment, lower interest rate or change your loan term? Regardless of your goal for refinancing, you may be able to swap your current loan for a new loan much sooner than you think. 

But before you apply with a mortgage lender, it’s vital to understand how refinancing works and what to consider when deciding if it’s a smart financial move. 

Home Loans and Mortgage Refinancing

General Refinancing Timeframe

Depending on the type of home loan you currently have, you may be able to refinance your home right away. But in some instances, there’s a mandatory waiting period of at least six months. Let’s review how long before you can refinance a house depending on the type of loan.

Timeframes for Refinancing of Specific Loans

  • Typical Length of a Home Refinance: between 30 and 45 days, assuming there are no delays with the appraisal or inspection 
  • Conventional and Jumbo Loans Refinancing: no waiting period if you refinance with a new lender, but you may have to wait anywhere between six to 12 months to refinance with the same lender
  • (Federal Housing Administration) FHA Simple Refinance: six months of timely payments 
  • FHA Streamline Refinance: 210-day waiting period and six consecutive monthly payments unless you refinance into a conventional loan 
  • FHA Cash-out Refinance: you must own and live in the home for at least 12 months 
  • VA Streamline Interest Rate Reduction Refinance Loan (IRRRL): six-month waiting period (starting from the due date of your first monthly payment), and some lenders will also require 12 months of timely payments 
  • VA Cash-Out Refinance: follows the same guidelines as the VA Streamline IRRRL
  • USDA Non-Streamlined: 180 days of on-time payments 
  • USDA Streamlined-Assist: 12-month on consecutive-on time payments 
  • Cash-out Refinancing: six-month waiting period, and you must meet the lender’s minimum loan-to-value (LTV) threshold, which refers to the mortgage amount compared to the property value

Home Loans and Mortgage Refinancing

 Reasons to Refinance your House

  • Lower Monthly Payments: When you refinance your mortgage, you could opt for a longer loan term to get a more affordable monthly payment. But keep in mind that you’ll likely pay more interest since the lender will have more time to collect from you.
  • Change Loan Types: If you want to convert from a government-backed home loan to a conventional mortgage, refinancing could be worthwhile if the numbers make sense. Some homeowners also refinance from adjustable-rate mortgages (ARMs) to fixed-rate mortgages to get a set monthly payment. 
  • Borrow from Home Equity: You can convert a portion of your home’s equity into cash with a cash-out refinance mortgage loan. Even better, the funds can be used to make costly home improvements, pay off high-interest debt or however else you see fit. 
  • Get Rid of Your Mortgage Insurance: Many lenders require you to carry private mortgage insurance (PMI) if you put less than 20% for your down payment. And if you opt for an FHA loan, PMI is assessed for the life of the loan. But if your home’s value has increased significantly due to market conditions, you may be eligible for a new conventional mortgage with no private mortgage insurance (PMI). Or you can possibly switch from an FHA to a conventional loan to get rid of PMI and lower your monthly mortgage payment. 

Ready to Refinance Your Mortgage?

Doing your due diligence when exploring lenders is vital to refinance your current mortgage in hopes of getting a better deal. 

Consider loanDepot to lend a helping hand and provide a seamless experience. With over 12 years of industry experience, loanDepot leverages proprietary paperless technology to minimize hiccups and ensure your loan closes in a timely manner. 

Here’s what to expect when you refinance with loanDepot

  • Step 1: Speak with one of over 1,700 Licensed Loan officers to discuss your goals and potential options. 
  • Step 2: Determine your refinancing goals. 
  • Step 3: Review loan products to determine which is the best fit for your financial situation. 
  • Step 4: Work with your Licensed Loan officer to complete an application and have it sent to underwriting for approval. 
  • Step 5: Submit any additional documents the underwriter needs to make a lending decision. 
  • Step 6: Schedule your closing, review the loan documents and sign on the dotted line. 

In most instances, it takes up to 45 to 60 days to refinance your mortgage with loanDepot. To learn more about the refinance process or apply for consideration, select the “Apply Now” button found on the website. Input the requested information, and a loan officer will contact you promptly with additional information on how to move forward. 

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