![]() ![]() Although it can appear to be overwhelming, it’s far less work than buying a home with a mortgage. The refinancing timeline below can help you prepare for what’s involved in the process. On average, it took about 45 days to refinance a mortgage during the six months ending in August 2023, according to ICE Mortgage Technology, which provides software and services to lenders. W-2 employees may be able to close quicker than business owners and independent contractors. If you’re getting a conventional conforming mortgage, you may be more likely to close quickly. ![]() If you have a home equity loan or HELOC, that lender must agree to be in the second lien position on your new loan. Some lenders specialize in fast closings. If you drag your feet whenever your loan officer asks for a document, closing will take longer. When lenders see a surge in mortgage applications and don’t have the staff to keep up, the process will take longer. Things that can affect how long it takes include: How Long Does the Refinancing Process Take? Don’t assume your existing servicer will give you the best possible terms. In fact, submitting applications with multiple lenders, just as you might have done when you bought your home, is the best way to secure the lowest rates possible. You can refinance with any lender, not just your current mortgage servicer (which might not be the same company you closed your mortgage with). There are a couple of exceptions, though: If your existing loan is an FHA or VA loan, you may be eligible for an FHA streamline refinance or a VA streamline refinance (VA IRRRL). If your home’s value has decreased and you owe more on your mortgage than your home is worth, you likely won’t be able to refinance. ![]() To refinance, you’ll need to have positive equity in your home, meaning you owe less on your mortgage than your home is worth. Your lender uses the new loan to pay off your old loan. When you refinance, you get a new mortgage. Don’t worry: People with no experience do it every day. If you’ve inherited a home, refinancing might be your first experience getting a mortgage. It’s nearly identical to financing a purchase, minus all the complexities of buying a property. If you’ve bought a home with a mortgage, you know how the refinance application process works. ![]()
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