How Long Does a Refinance Take on Your Home?

The mortgage refinance market is on fire. It is reaching levels last seen during other boom periods in 2012 and 2016.

In fact, over 50 percent of all home loan closeouts are refinances. This is the first time this figure has breached the 50 percent mark in 4 years.

Homeowners are taking advantage of historically low interest rates. The United States Federal Reserve continues to lower rates, adding even more incentive for homeowners to refinance.  According to, one of the incentives it gives to homeowners is the power to “…potentially build more equity…” into their home.” One way homeowners are doing this is by taking out a cash-out refinance loan for home renovation purposes to improve their home value.

Refinancing is popular because it allows homeowners to lower their monthly payment or liquidate home equity. Read on for an answer to the question, how long does a refinance take on your home?

How Long Does a Refinance Take On Your Home?

A mortgage refinance takes significantly less time than a home sale. There are fewer steps for both the lender and borrower.

For example, a home refinance does not involve legal representation. This means that you get to skip the legal review by the buyer and seller.

Another notable omission for refinances is the home inspection process. In a refinance situation, the borrower has been living in the house for some time without issue.

The borrower would not want to enter a new loan agreement if the house was structurally at risk. Therefore, a home inspection from a certified professional is not required. This also eliminates the potential for lengthy home repairs that push the closing out even further.

The end result is an abbreviated loan approval process. The average refinance takes between 30 to 45 days to reach closing.

What Does the Lender Ask For?

By responding to the lender’s requests promptly, you can move the process along faster. The lender is going to ask for personal information that allows them to run your credit history. They will use your credit report to evaluate existing liabilities.

In addition, the lender is going to request documents that support your income. These include an IRS W-2 statement and copies of your pay stub. Another common request is to ask for a copy of your bank statement.

To get the process rolling, the lender charges an application fee. Another upfront expense is a home appraisal.

In order to move forward with the loan amount, the lender requires an updated value assessment. A home appraisal visit is short; however, it takes a few weeks to schedule and issue a final report.

What Mortgage Type Are You Applying For?

The lender is going to use all of the information collected to see what type of mortgage suits your situation. This largely depends on the home appraisal and how much equity is in the home.

If the mortgage amount is 80 percent or less of the appraised value, the lender will likely steer you to a conventional loan. A New* HARP-like Program Starts January 1, 2019, which your lender may direct you as well.

Wrapping It Up

The refinance process is a lot easier than buying a new home. Many steps like the home inspection are waived. This leads to a 30 to 45 day process.

If you enjoyed this article about how long does a refinance take, check out our blog for more great content.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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