How long it takes to refinance a house can take between a few weeks and longer than a month, depending on your lender’s policies and the circumstances surrounding your refinance.
Refinancing your mortgage can seem like an easy fix if you’re hoping to lower your monthly payment or find better loan terms. It can also be a little intimidating if you’re not sure how long the process takes or how to prepare for it.
To help you get a better idea of what to expect, home and car insurance
comparison app Jerry
is here to give you the rundown on home refinancing. We’ll go through some common reasons to finance, what steps you can take to help streamline the process, and more. How long does home refinance take?
How long it takes to refinance a house can vary greatly depending on the company you’re working with and the circumstances of your refinance. The home refinancing process can take as little as a few weeks or more than a month.
Knowing what to expect ahead of time can cut down on the total time it takes to refinance your house.
What does it mean to refinance a house?
When you refinance your home, you’re essentially taking out a new mortgage (usually with better terms and a better interest rate) to make it easier to pay off your current mortgage. Both contracts are technically in place until the home is paid off.
How do you refinance your house?
Refinancing a loan can be broken down into a few general steps.
First, compare rates from a few different lenders (including banks, credit unions, and other financial institutions) so you can make an informed choice.
Once you make your pick, submit an application (you’ll need to provide proof of income, your Social Security number, and other documents).
If your application is approved, the lender will process and underwrite it, and you’ll close on the loan just like closing on a house.
MORE: How to refinance a car
When to refinance your house
The following are just a few reasons homeowners decide to refinance their mortgages.
Better loan terms or lower interest rate
If you’re having trouble making your monthly payments or you’re just looking for another area to save money, refinancing with new terms or a lower interest rate can help.
You want a different type of home loan
If you’ve signed on for an adjustable-rate mortgage (ARM) and now want a fixed-rate mortgage, or you want to try to get rid of a private mortgage insurance (PMI) requirement, a refinance might help you find a mortgage option that works better for you.
You want to use equity toward an investment
If you’ve owned your home for at least several years, a cash-out refinance can help you pay for a significant purchase or investment.
How to speed up the refinancing process
It’s hard to say exactly how long a home refinance will take. Some factors lie outside your control—like issues with paperwork or processing delays due to high demand.
However, you can take some easy steps to make things easier on the lender and minimize the chances of a holdup:
Get your finances ready
Just like when you applied for your home loan the first time around, your new lender will need verification that you’re financially stable enough to take on a new loan.
Refinancing will come with additional costs, like appraisal fees, closing costs, underwriting fees, or title searches and insurance, so you’ll want to gather some extra cash.
Additionally, if you apply for a mortgage refinance before you’re financially able, the hard credit pull run during your application could make it more difficult to reapply when you are ready.
Check your credit score
It’s important to know where your credit score stands ahead of time so you don’t encounter surprises when you apply to refinance your house.
Make sure to inspect your credit report so you have the chance to address any discrepancies before a potential lender pulls your credit.
Gather important documents
The documents you’ll need to refinance your mortgage, like tax forms and pay stubs, make up a lengthy but important list. You’ll need to prove your identity, income, and financial stability by showing the lender:
Personal identification documents (e.g., driver’s license)
Proof of income (e.g., pay stubs)
Proof of insurance (e.g., insurance card)
Proof of assets (e.g., bank statement)
List of debts (e.g., credit card report)
Requirements can vary from lender to lender, so it’s a good idea to look into their particular requirements ahead of applying so you can make the right preparations.
Prepare your home for the appraisal
If your home needs any significant repairs, try to take care of them before your home is appraised
so they won’t negatively affect your home’s value. How to save on refinancing and home insurance
One of the best ways to save on refinancing is to compare rates from several different lenders so you can see what options are out there for you.
The same goes with saving on home and car insurance
—and the Jerry
app makes finding those quotes quicker and easier than ever! The process is much faster than mortgage refinancing—getting started takes less than a minute! Once you download the app, you’ll just enter your information, and in an instant, you can start comparing car and home insurance quotes from top providers.
Jerry users save an average of $887 per year on car insurance alone. That can make a big difference when you're preparing for a mortgage refinance.
“Jerry
was wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.
RECOMMENDEDThis app is great, but the customer service is even better! Not to mention convenient! My husband and I got the lowest rate (much lower than the rates I was finding online through my own searches), quickly, and pretty much all through text message! Thank you so much for a hassle free experience👍
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