How soon can I refinance my mortgage?

Refinancing a mortgage can be beneficial for borrowers looking to change their current home loan or save on monthly payments. But how soon you can refinance a mortgage depends on your loan type, how long you’ve lived in your home and whether you want to stay with your current lender.

The amount of time you will have to wait before refinancing a mortgage is referred to as seasoning. Knowing the seasoning requirements of your loan will give you an idea of how long you may have to wait before you can refinance your home loan.

If you are ready to start your mortgage refinance or connect with an expert Loan Officer to learn more about how a refinance could help you, begin by filling out a mortgage refinance application.

The exact refinancing timeline can vary by loan type. When looking at how long it will take to refinance your mortgage, the first thing you will have to do is check the type of home loan you have.

Conventional loans can be refinanced as soon as you would like if you choose to refinance with a new lender. If you are hoping to refinance your conventional loan with your current lender, you may have to wait six months before refinancing. Contact your current loan officer to learn your options for refinancing a conventional loan.

You have several options when looking to refinance an FHA loan. Two of the most popular options are a streamline refinance and cash-out refinance*.

Streamline refinancing replaces your current FHA loan with a one that has a lower rate without all the paperwork and processes that are required with traditional refinances.

A cash-out refinance replaces your current loan with a larger one, returning the difference to you in cash. To qualify for a streamline refinance, you must have had your mortgage for at least 210 days and have lived in your home for at least six months.

When looking to refinance a VA loan, you will need to wait at least 210 days from your first monthly mortgage payment with at least six consecutive monthly payments for an Interest Rate Reduction Refinance Loan (IRRRL). When looking to get a VA cash-out refinance, your lender may require the same wait.

USDA loans have three options for refinancing: non-streamlined, streamlined and streamlined assistance. All three options require your loan to be at least 12 months old before refinancing. For a streamlined assistance refinance, you must be current on the past year of payments. For a non-streamlined and streamlined refinance, your past 180 days of payments must have been made on time.

The exact time it will take for you to get a cash-out refinance can vary based on the loan you have. Contact your Loan Officer to learn how soon you could get a cash-out refinance.

Standard waiting periods for accessing home equity

The standard waiting period for accessing home equity through a cash-out refinance or home equity loan is six months. However, a cash-out refinance or home equity loan is not your only option for accessing home equity.

If you are looking to access your home equity sooner than six months, a home equity line of credit (HELOC) may be the right option for you. HELOCs typically do not have minimum time requirements you must meet before you can access your home’s equity.

Yes, there are times you can refinance immediately after buying a home.

A rate-and-term refinance is an option for those looking to reduce the mortgage interest rate or the terms that have come with their original mortgage. Some lenders will allow you to get a rate-and-term refinance within the first six months of your home loan.

Buying a home with cash means not having a home loan, and since refinancing refers to changing your current home loan, you would not have a home loan to refinance when buying a home with cash. You can, however, get a first mortgage like a HELOC or home equity loan immediately after buying a home in cash.

There are several factors that can influence how quickly you will be able to refinance your home loan. Here are some major factors that determine how quickly you could refinance.

• Current loan type
• How long you have been in your home
• Your current credit score
• The requirements of your lender
• The amount of equity you have in your home

If it is beneficial for you and you meet the requirements of your lender, it is never too soon to refinance.

When looking to refinance your home loan, there are two questions you can ask that could help you determine if it is too soon for you:

• Can you afford the closing costs associated with your refinance?
  • Depending on their home equity, some borrowers may be able to finance their closing costs into their new loan.
• Have interest rates dropped after your original loan?

• Lower interest rates could reduce the monthly payments you make, but that isn’t the only reason to get a refinance. Some borrowers refinance for access to home equity, shorter loan length or to eliminate mortgage insurance. 

You can get started refinancing your current home loan with an online application.

An online mortgage refinance application will connect you with a professional Loan Officer who can help you through the refinance process and answer any questions about your new loan.

Get started on your mortgage refinance today by completing an online application.

*Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principle amount and will be paid off over the full loan term. Contact Rate for more information.

Rate is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the Nevada Department of Veterans Services, the US Department of Agriculture, or any other government agency. No compensation can be received for advising or assisting another person with a matter relating to veterans’ benefits except as authorized under Title 38 of the United States Code.

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply. 

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate. Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.