How Can You Quickly Refinance A Mortgage?

Womdering how can you quickly refinance a mortgage? We got you!

With current interest rates at major lows, many borrowers are looking to refinance their mortgages. Refinancing can provide numerous benefits, including a lower monthly payment, a lower interest rate, and the ability to pay off your loan faster.


However, like any major financial process, refinancing takes time – usually several weeks. If you get into a situation where you need to refinance your mortgage quickly, there are a few options available to you.

Let’s take a look at how you can quickly refinance your mortgage.

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How Can You Quickly Refinance A Mortgage?

Depending on the type of home loan you have, there are several time frames for when you can refinance a mortgage.

Many lenders demand that you hold the loan for a specific amount of time—often referred to as a “seasoning” period—before refinancing.

When you can refinance your mortgage depends on the type of refinance option you select, such as a rate-and-term refinance to change your interest rate and term, a payment refinance to keep the difference, or a streamlined refinance, which is only available for government-backed loans.

Below we have mentioned the types of loans and their timeline on how quickly you can refinance them:

1. Conventional Loans

After the original house loan has closed, you can typically refinance a conventional mortgage without taking any cash out.

However, some lenders impose waiting periods, ranging from one to two years, before you can refinance with the same lender.

If you’re looking to refinance with a new lender, you may be able to do so after six months.

Keep in mind that you’ll need to go through the entire loan approval process again and may need to pay for appraisal fees and other closing costs.

2. Cash-Out Refinance

With a cash-out refinance, you can take out a new loan for a higher amount than your current balance and keep the balance difference.

However, you may have to hold off on applying for these loans for approximately six months after your initial mortgage closes.

3. Streamline Refinance

Before submitting an application for a streamlined refinance with the Federal Housing Administration, your house must have been yours for at least 210 days.

Or, if you satisfy the qualification requirements and your payments are up to date, you might be able to refinance right away.

4. Veterans Affairs Loans

When refinancing a Veterans Affairs (VA) loan, you have two options: a streamline (IRRRL) refinancing and a cash-out refinancing.

Regardless of the option option you select, you must hold off on refinancing a VA loan for at least six months after your first monthly payment deadline.

Before allowing you to refinance your loan, many lenders may even require that you make 12 months of on-time payments.

5. USDA Loans

Before you may apply to refinance a USDA loan, you need to have paid on-time payments for at least 12 months consecutively. You don’t need for a credit check or fresh assessment.

Unlike some other government-backed loans, including FHA and VA loans, you cannot perform a cash-out refinance with a USDA loan.

Why You Might Want to Do a Quick Refinance?

Closing on a house loan is a stressful process that usually takes a lot of time and money. There are several reasons to consider refinancing, even though you might not want to go through the loan application process again.

One benefit of refinancing your mortgage is financial savings. Additionally, even if you’ve taken this path before, it’s still worth checking out since there is no restriction on how frequently you can refinance a home.

Some other reasons to refinance your mortgage are to:

1. Reduce the Interest Rate

You might get a chane to lower your interest payments by refinancing to a lower rate if mortgage rates have significantly decreased after you closed on the initial mortgage.

A cheaper rate may also be an option if your credit score has recently improved. It’s important to compare rates from multiple lenders to be sure you’re getting the best deal.

2. Reduce The Amount You Pay Each Month

A housing payment that once used to fit your budget may not seem as affordable after a couple of years.

If this is the case, you may want to investigate if refinancing to a longer-term would work better for you.

3. Convert to a Fixed-Rate Mortgage

An ARM, or adjustable-rate mortgage, provides a fixed rate for a predetermined time. Once that time period is up, the rate is variable, which ensures your payments could go up.

If you notice that interest rates are rising, you can choose to refinance into a 17 or 30-year fixed-rate mortgage.

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Bottom Line

It’s possible to refinance your mortgage relatively quickly after you close on the initial loan. The main factor that determines how fast you can do so is the type of loan you have.

Some government-backed loans may require that you wait at least six months before refinancing, while others may not have any waiting period.

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