How soon can you refinance your home after purchasing it?
If you’re wondering how soon you can refinance a mortgage, even if you’ve just bought a house or recently refinanced, the answer might surprise you. Many homeowners have the option to refinance into a lower-rate loan immediately, with no waiting period. Others may only need to wait as little as six months. This means there’s a strong possibility that you’re eligible for a mortgage refinance at today’s favorable rates.
Check your refinance eligibility. Start here (Aug 5th, 2025)In this article (Skip to...)
Understanding mortgage refinancing timelines
How soon can you refinance your mortgage? The answer depends on the type of mortgage you have and your current financial situation.
Verify your refinance eligibility. Start here (Aug 5th, 2025)- Conventional loans: Immediately after closing, but many lenders require a 6-month “seasoning period” for refinancing with the same company
- FHA loans: 210 days to 12 months waiting period
- VA loans: 210-day wait or six on-time payments, whichever comes later
- USDA loans: 12 months of on-time payments
- Jumbo loans: Subject to individual lender policies
Let’s take a closer look at the refinancing timelines for each loan type.
How soon can you refinance a conventional loan?
If Fannie Mae or Freddie Mac backs your conventional loan, you may be able to refinance immediately after closing. However, many lenders enforce a six-month “seasoning period” before allowing you to refinance with them again, though switching to a different lender can often bypass this wait.
Not all conventional loans are backed by Fannie or Freddie, so check with your lender or servicer. Also, confirm whether your current loan has a prepayment penalty, as that could impact your ability to refinance early.
Check your options to refinance a conventional loan. Start here (Aug 5th, 2025)Rules for a conventional cash-out refinance
Most lenders require a six-month waiting period after your original mortgage closing to qualify for a conventional cash-out refinance. You also typically need at least 20% equity in your home. If you made a sizeable down payment or your home has appreciated, you may already meet that threshold.
If you’re mainly looking to access cash, a home equity loan or a home equity line of credit (HELOC) may offer a more cost-effective alternative without refinancing your entire mortgage.
Check your cash-out refinance eligibility. Start here (Aug 5th, 2025)How soon can you refinance an FHA loan?
The Federal Housing Administration requires different waiting periods depending on the type of refinance:
- FHA Streamline Refinance: Requires at least 210 days since your original loan and six on-time payments.
- FHA rate-and-term refinance: Requires a six-month wait and no more than one late payment in the past 12 months.
- FHA cash-out refinance: Requires at least 12 months of homeownership. If you’re refinancing an existing mortgage, it must be at least six months old, with on-time payments for the past year.
How soon can you refinance a VA loan?
The Department of Veterans Affairs requires a waiting period of at least 210 days from the original loan closing or six on-time monthly payments, whichever comes later. This rule applies to both VA refinance options: the VA cash-out refinance, which lets you tap into your home’s equity, and the Interest Rate Reduction Refinance Loan (IRRRL), also known as the VA streamline refinance.
Check your options to refinance a VA loan. Start here (Aug 5th, 2025)How soon can you refinance a USDA loan?
To refinance a USDA loan, you typically need 12 months of on-time payments. The United States Department of Agriculture offers three options: Streamline, Streamlined-Assist, and Non-Streamlined. The streamline option may allow refinancing after 6 to 12 months, depending on the lender, while the other two require a full 12-month payment history.
Check your options to refinance a USDA loan. Start here (Aug 5th, 2025)How soon can you refinance a jumbo loan?
Jumbo loans, also known as non-conforming loans, aren’t regulated by Fannie Mae or Freddie Mac, so there’s no required waiting period set by federal guidelines. However, many lenders impose their own seasoning requirements before allowing a refinance. Check with your loan officer to understand your lender’s specific refinancing timeline and requirements.
Check your options to refinance a jumbo loan. Start here (Aug 5th, 2025)
6 reasons to refinance your mortgage
“How soon can you refinance a mortgage?” is a question many homeowners ask. The decision should be based on your current financial situation and future objectives.
“What’s most important to focus on is, what are the monthly and lifetime savings of the loan? What are the costs? And how long will it take you to recover those costs with the savings you’ll earn?” says Ralph DiBugnara, president of Home Qualified.
Verify your refinance eligibility. Start here (Aug 5th, 2025)1. Get a better interest rate
Getting a lower interest rate is a common reason to refinance. When interest rates go down, you can save a lot of money on interest payments by refinancing. This is especially true for loans with long terms, such as a 30-year mortgage.
2. Pay off the home sooner
Another good reason to refinance is to shorten the loan term. Even though your monthly payments might go up, you’ll probably pay less in interest over the life of the loan. Also, you’ll own your home outright much faster.
3. Get a fixed-rate loan
Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage (FRM) can provide financial stability. ARMs typically begin with lower rates, but they can increase substantially over time. By switching to a fixed-rate mortgage, you lock in a constant interest rate for the life of the loan, which makes budgeting easier.
4. Tap into your home equity
With a cash-out refinance, homeowners can use their home equity to pay for big expenses like home improvements or to pay off debts with high interest rates, like credit cards or student loans. This can make financial sense if the interest rate on the new mortgage is lower than the interest rate on the debts that are being paid off.
5. Remove mortgage insurance
If you have an FHA loan, you’re paying a mortgage insurance premium (MIP). For loans closed on or after June 3, 2013, MIP can be canceled after 11 years only if you put down 10% or more at origination; otherwise, it remains in effect for the life of the loan. The only way to eliminate MIP early, typically once you’ve built 20% equity, is to refinance into a conventional mortgage.
6. Handle your divorce settlement
Refinancing your home during a divorce mortgage settlement is an effective way to remove your spouse’s name from the mortgage. This process ensures that only one name remains tied to the property, ensuring sole ownership. It’s an important step in finalizing property matters in a divorce.
Costs and considerations when refinancing your mortgage
Refinancing can help borrowers secure a lower interest rate or tap into home equity, but it also comes with costs and trade-offs.
Check your mortgage refinancing options. Start here (Aug 5th, 2025)Closing costs and fees
Refinancing typically comes with closing costs, including application, appraisal, title, and origination fees. These upfront costs usually range from 2% to 5% of your loan amount. Some lenders offer no-closing-cost options, but these often involve a higher interest rate or rolling fees into your loan, which could increase total borrowing costs over time.
Credit score impact
Your credit score affects your eligibility and the interest rate you’ll receive. Review your credit report for errors and work to improve your score before applying. The better your credit, the more likely you are to secure favorable loan terms.
Reduce your mortgage payment
Refinancing into a longer loan term can reduce your monthly payment, providing short-term relief. However, this typically increases the total interest paid over the life of the loan. Make sure this aligns with your long-term financial goals.
Watch for higher rates
Interest rates may have risen since you took out your current mortgage. If today’s mortgage rates are higher, refinancing might not make sense unless you’re switching from an adjustable-rate mortgage to a fixed-rate loan or pulling equity from your home.
Total cost of the new loan
Don’t focus solely on the interest rate. Consider the full cost of refinancing, including closing fees, any prepayment penalties, and the total interest you’ll pay over the life of the new loan. Use a refinance calculator to find your break-even point.
Impact on home equity
Refinancing resets your mortgage, which can slow how quickly you build equity, especially if you take cash out or extend your loan term. Consider how this affects your long-term homeownership and financial goals.
When is the right time to refinance your mortgage?
There is no universal answer, but timing your refinance well involves weighing two key factors: market conditions and your personal finances.
Check mortgage loans from multiple refinance lenders. Start here (Aug 5th, 2025)Market conditions and interest rates
When mortgage interest rates drop, it could be a good time to refinance, especially if your existing loan has a higher rate. Even a slight rate reduction can result in substantial savings over time. Stay informed about real estate market trends and interest rate movements to spot opportunities to refinance on more favorable terms.
Your financial readiness
If your credit score has improved since you got your mortgage, you may qualify for a lower rate. If your home’s value has increased, you may also have enough equity to remove mortgage insurance or qualify for a cash-out refinance. Take stock of your credit, income, and equity before moving forward.
How to refinance your mortgage step-by-step
Refinancing may feel complex, but breaking it down into manageable steps can help you navigate the process with confidence. Here’s a step-by-step guide to help you successfully refinance your home loan.
Check mortgage loans from multiple refinance lenders. Start here (Aug 5th, 2025)Step 1: Prepare your documents
Gather key paperwork before applying. This includes recent pay stubs, W-2s or tax returns, asset and bank statements, proof of homeowners insurance, your current mortgage statement, and a photo ID. Having everything ready can speed up the process.
Step 2: Compare lenders and offers
Research refinance lenders and request multiple quotes to compare rates, fees, and terms. Look at the annual percentage rate (APR) for a complete picture of each offer’s cost, and consider customer reviews and service quality when deciding.
Step 3: Apply for the loan
Once you choose a lender, complete the application and submit your documents. Be prepared to explain your refinancing goals and answer questions about your financial history.
Step 4: Go through underwriting
Your lender will review your financial profile and likely order a home appraisal to assess your property’s value. If approved, you’ll receive a loan estimate outlining your new rate, mortgage payment, and closing costs.
Step 5: Close on your new loan
At closing, you’ll sign the final documents and pay any upfront costs unless they’re rolled into the loan. Your old mortgage will be paid off, and you’ll start making payments on your new loan under the updated terms.
FAQ: How soon can you refinance your mortgage loan?
Verify your refinance eligibility. Start here (Aug 5th, 2025)In most cases, you’ll need to wait at least six months after buying a house before you can refinance. Some government-backed loans, such as FHA, VA, and USDA loans, may have different waiting periods ranging from 6-12 months.
There is no legal limit on how often you can refinance your home. However, most lenders require a six-month waiting period between refinances. Keep in mind that refinancing involves closing costs, so it’s essential to ensure that the benefits of refinancing outweigh the expenses.
Refinancing typically takes between 30 and 60 days to complete. Government-backed Streamline Refinance loans, which often don’t require an appraisal, may close faster.
When you refinance, mortgage lenders check your credit report using a hard credit pull. A hard pull can knock a few points off your score. However, you can get refinance quotes from multiple lenders without having multiple credit dings. As long as you get all your quotes within a reasonable shopping period (2-4 weeks), all credit inquiries during that time count as a single event. So the effect on your credit will be minimal, typically five points or less.
There are two main ways to avoid closing costs when you refinance. First, you can look for a no-closing-cost refinance, which typically means the lender covers your closing costs in exchange for a higher interest rate. Or, you can roll closing costs into your new loan balance. With this method, closing costs are financed along with the rest of your mortgage, so you don’t owe anything out of pocket on closing day.
Yes. When you refinance, you’re opening a brand new mortgage loan. So you start your repayment schedule over on day one. You have the option of choosing a shorter loan term when you refinance, such as refinancing a 30-year mortgage into a 15-year mortgage to pay off the loan sooner. However, a shorter loan term means a larger monthly payment.
Sometimes. FHA and VA loans have streamline refinance programs that may not require a credit check, assuming you meet certain conditions. However, a cash-out refinance or switching to a different type of loan, such as replacing an FHA loan with a conventional loan without PMI, would require a credit score of at least 620.
Ready to refinance? Here’s how to get started
You can refinance sooner than you think, often just months after homebuying. With the right timing, refinancing could lower your interest rate, reduce your monthly payment, or eliminate mortgage insurance.
Use a mortgage calculator to explore potential savings, then click the links below to compare lender offers and take the next step toward refinancing.
Time to make a move? Let us find the right mortgage for you (Aug 5th, 2025)
