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How long does a refinance take? Plan on five to six weeks. ICE’s Mortgage Monitor put the average time from application to closing at 38.2 days in March 2026, across all loan types.
Of course, several variables can affect that timetable including how busy lenders are with loans and refinances, your particular property, and if you have complicated finances.
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12 Steps to Refinance a Mortgage
From finding out your home’s value to signing the closing papers, you can expect to experience these 12 steps.
Some of these steps require you to take action, others detail how the processing works. By keeping up to speed on the refinancing processing and doing your part quickly and efficiently, your refinance should go faster.
Estimate Your Home Value and Compare Rates (Steps 1 and 2)
1. Determine the value of your home. This can be quite a guessing game. The best indication may be similar homes on your street that have sold. Just make sure that the homes are similarly updated, and have the same square footage, lot size and amenities. Look at apps like Redfin, which shows you recent nearby sales. You can even take a look inside to see if the home was in better or worse condition than yours.
Another option is your county assessor’s website, but these values tend to be lower than what your home might actually appraise for. You may need your parcel number to look up your home, but many property assessors’ websites allow you to look up your property by the address.
Other sites may have a value for your address, but those may not be accurate. Your best bet will be your appraisal, which your lender will order. Speaking of the lender, it may have a way to estimate your home’s value for you, so don’t spend too much time trying to appraise your own home. Do you have enough equity to refinance? Values may have gone up or down since you bought your home. If they’ve increased, no problem, but if they’ve decreased, you might not have enough equity.
2. Consider different loan types and examine interest rates. What is your goal for refinancing your mortgage? Do you want a lower rate, more time to pay, or cash for renovations, tuition, or another urgent need? Explore several lenders that can fulfill your goal.
When you check interest rates with these lenders, make sure you do that all on the same day. Otherwise, you get invalid comparisons. Interest rates change daily.
Choose a Lender and Apply (Steps 3 to 6)
3. Choose the right lender. Read customer reviews and third-party reviews of lenders that interest you. Ask family, friends, and co-workers with recent mortgage experience about the lenders they engaged. When you’ve narrowed your choices to three or less, compare all their rates, terms, and requirements.
Ask all your finalists how long they typically take to complete a refinance. Select the one that’s most appropriate for your situation.
4. Explore fees and other costs. Ask your lender what fees they charge and what that amount will be for you. They probably won’t have exact amounts yet, but they can estimate. Potential costs include an origination fee, recording fees, taxes, credit report costs, and title fees.
5. Gather the required documents. These usually include one month of pay stubs, two years of tax returns and W-2s, the past two months of bank statements, a copy of your homeowner’s insurance policy, and a recent mortgage statement.
6. Complete a loan application. Most of these should be online, but in rare cases may need to be mailed or done by phone. Keep your needed paperwork handy so you can refer to it. Questions on the application might include details about your employment, recurring debts, and what kind of loan you want. Lenders can’t ask about your plans to have children. The application does ask for your sex, ethnicity and race for government monitoring, but you don’t have to answer.
With online and mail-in apps, check them for accuracy after completed. Errors can slow the refinancing process down.
From Loan Estimate to Closing (Steps 7 to 12)
7. Wait for your loan estimate. According to the Consumer Financial Protection Bureau you must receive a loan estimate within three business days of filling out the application. This three-page document lists your total costs, the new monthly payment, money needed at closing, and more details.
8. Loan processing begins. Now you wait while the lender and underwriter get busy doing their work.
9. A home appraisal is arranged. The lender sets this up with you, so it may happen at any time while your loan processes. In some cases, technology has made an appraisal unnecessary. If that’s true for you, your lender may get an appraisal waiver offer from Fannie Mae’s or Freddie Mac’s automated underwriting system.
10. Make sure you’re available. While the underwriter is deciding whether you’re risk-worthy or not, he or she may need additional documentation or have questions for you. The quicker you comply, the speedier the process, and the sooner you’ll have your refinance.
11. Lock in your mortgage rate. Actually, this can be done at any time during the process, but if you want to gamble on the rates going down, you can’t wait much longer. Your lender sets the deadline for locking your rate before closing.
12. Close on your new loan. Sign all the documents, pay the fees, and now you officially have a refinance on your home.
You can accelerate the process by making sure you qualify for this refinance.
3 Ways to Prepare for the Refinancing Process
Of the three ways to prepare listed here, only home equity was mentioned above in the “12 Steps to Refinance a Mortgage.” You should check on all of these (credit score, home equity, and debt-to-income ratio) before starting the refinancing process.
1. Credit score. Check with one of the credit bureaus (Transunion, Experian, or Equifax) to get your unique credit score. The minimum score depends on the loan and the lender. Fannie Mae dropped its 620 minimum for loans run through its automated system in November 2025, but many lenders still require 620 or higher. Read more about credit scores here. If you have what’s considered a good score, leave it alone. Don’t miss any payments or take on new debts.
2. Home equity. For a cash-out refinance, Fannie Mae and FHA cap the new loan at 80 percent of your home’s value. That means you need more than 20 percent equity to take cash out. However, if you have less than 10 percent, but you have a good credit score, you may still be able to refinance without taking cash out. If you’re not sure how much equity you have in your home, contact your current lender and ask. They should send you a mortgage statement.
3. Debt-to-income (DTI) ratio. Your DTI is the amount of your monthly income that goes to your bills. Lenders prefer working with borrowers who have a 50 percent or lower DTI. Anything more than 50 percent is above Fannie Mae’s limit for loans run through its automated system. Here’s how to calculate your personal DTI.
When your credit score, home equity, and DTI meet the refinancing requirements, you can start collecting the documents you will need to give to the lender.
Assemble Your Refinance Documents Ahead of Time
Expedite your refinance by gathering your documentation early. You may need to request some of these documents from other sources so bear in mind the time that will take. That’s why this should be one of the early steps you take.
Here are the documents you’ll likely need:
- Proof of income for both primary and secondary earners (recent pay stubs covering the past month, tax returns from the past two years, and forms like 1099s and W-2s)
- Name and address of all employers from the past two years
- A written explanation if there’s a gap in employment in the past two years
- Former addresses if you’ve moved in the past two years
- Proof of assets (two recent statements from savings, checking, investments or retirement accounts)
- List of all debts (this should include current mortgage, credit cards, student loans, auto loans, and home equity loans)
- Proof of insurance (copies of your homeowner’s policy and your title insurance policy)
Besides gathering the paperwork you’ll need, you need to get ready for your home appraisal, too.
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Prepare for Your Appraisal Ahead of Time
When it comes to a refinance, everything depends on your appraisal. That is, if one is required. Many refinance candidates won’t need an appraisal at all.
For instance, FHA, VA, and USDA streamline refinance programs generally don’t require an appraisal. Many conventional loan applicants receive an appraisal waiver because the home is determined by computer algorithms as a “good risk.” These applicants save the cost of an appraisal and, in some cases, processing time.
Those who do need an appraisal will receive a report that shows your home value, quoted by a professional, that a buyer would reasonably pay for your property if you sold it today. You want your property to look sales-worthy for the appraiser.
Here are a few ways to make sure your property is ready for an appraiser:
Spiff up the interior and exterior with a new coat of paint. Painting doesn’t cost much, gives you immediate results, and can make a big difference. Clear the clutter. Finish any renovations that add value to your home.
Get your yard in shape to garner curb appeal. Mow the lawn, plant some color, and trim overgrown shrubs.
Track any improvements you’ve made with receipts, bills, and permits.
You can share the comparables you found with the appraiser if you want, but don’t expect him to use them. He has special training and certification to do his job.
The appraiser’s visit to your property is usually short. His final report may take longer, depending on his workload. The cost varies by appraiser and property.
Is a Refinance Worth It Now?
Whether a refinance makes sense depends on how today’s rates compare with the rate you have now. Freddie Mac’s 30-year fixed average was 7.18% on November 5, 2026, so check current rates against your own before you decide. If you can save money, increase your equity and/or pay your mortgage off faster, then you should apply for a refinance.
If you currently have an adjustable rate mortgage (ARM), converting to a fixed rate mortgage can make sense.
But the value of a refinance depends on your individual financial situation.
Some Reasons You May Choose Not To Refinance Now
Will you live in this home long enough to benefit from a lower rate and lower payment? It may take years to recoup your costs, so if you don’t plan to stay that long, you probably shouldn’t refinance.
A good way to figure this out is to calculate your break-even point. First, total the closing costs you’ll need to pay and let’s say that’s $3,000. Your new payment will save you $200 each month. Divide $3000 by $200 and that equals 15. That means in 15 months you’ll reach your break-even point.
If you haven’t been in your current home very long, you probably don’t have enough equity built up to refinance. Also, if your current rate is already well below today’s rates, a refinance to lower your rate won’t make sense.
4 Tips to Speed Up Your Refinance
Reviewing the variables affecting how long does it take to refinance a home, you have the power to speed up your refinance process by doing the following:
1. Choose a lender that works quickly. Find this out by asking ahead of time how long it typically takes them to close a refinance.
2. Answer questions and comply with requests immediately. When asked for more documentation or presented with questions, reply to your lender within 24 hours.
3. Use a refinance checklist to keep track of your loan. You can download one here.
4. Review the Closing Disclosure with a fine-tooth comb. You’ll receive this document at least three business days before your scheduled closing. It is the final version of your Loan Estimate. Compare them side-by-side to see what has changed. Even misspellings and typos must be corrected. If everything is as it should be, sign and return it to your lender.
If the APR on the disclosure becomes inaccurate beyond the allowed tolerance, a prepayment penalty (rare) is added, or you’ve requested a different loan product, a new Closing Disclosure must be issued and you’re subject to another three-day waiting period.
Getting a refinance in a timely manner depends on you doing what’s required quickly and efficiently. Then you’ve done everything you can and it’s up to your lender.
