When a homeowner decides to refinance their mortgage, they must go through an extensive process to get approved. This process includes researching different lenders, getting a credit report, and filling out a loan application. On average, refinancing a home can take 35 to 50 days from start to finish. The first step in mortgage refinancing is to compare the terms of refinancing offered by different lenders.
This includes looking at the interest rates, loan durations, and other factors. It's important to note that the overall numbers you see online may not be exactly what you end up paying, as specific loan terms can vary depending on your situation. You can usually apply for refinance loans with multiple providers within 45 days without them counting as more than one credit inquiry, so it usually doesn't affect your credit score too much. Once you decide to use a lender to refinance, you'll go through the entire mortgage approval process. This includes getting an appraisal on the home and verifying the title to the home.
The approval process can take 30 to 45 days. The current average mortgage refinance rates for a 30-year fixed-rate loan are approximately 6%. However, rates can vary more or less depending on factors such as your location and credit rating. When you refinance, you follow steps similar to those you took when getting your initial mortgage loan. This is why refinancing your home can take 35 to 50 days. While waiting a few weeks to more than a month may seem like a long time to get a new mortgage, most of the time is spent waiting for the paperwork to be processed. Knowing how long it takes to refinance a home can help you plan accordingly, so you can get a new home loan when you need it.
The new mortgage you get when you refinance replaces your current loan, an important difference between getting a second mortgage and refinancing.