How soon can you refinance a mortgage?

Refinancing your mortgage can unlock lower interest rates, reduce monthly payments, or help you access your home's equity for major expenses. However, the timing of a refinance matters, so many homeowners wonder exactly how soon they can refinance a mortgage after closing on their original loan.

Refinancing depends on several factors, including your loan type, lender policies, and the specific refinancing option you choose. While some conventional loans allow refinancing immediately after closing, government-backed loans like FHA and VA mortgages have stricter waiting periods. Understanding these timelines can help you plan your refinancing strategy and potentially save thousands of dollars over the life of your loan.

Timelines for refinancing various loan types

Different mortgage types come with different refinancing rules that determine how long you need to wait to refinance after your original closing.

Loan Type	Waiting Period	Special Requirements
Conventional	No waiting period	Lender-specific policies
Jumbo	No waiting period	Lender-specific policies
FHA	Six months	Must make six on-time payments
VA	Six months	Six consecutive payments required
USDA	12 months	One year of payment history

How soon can you refinance conventional loans?

Conventional loans offer the most flexibility on when you can refinance a mortgage — most lenders allow refinancing immediately after closing your original mortgage. But you must demonstrate that refinancing provides a tangible benefit, such as lowering your interest rate.

However, individual lenders may have policies requiring a brief seasoning period, typically 30 to 90 days, to ensure your loan performs as expected before allowing a refinance.

How soon can you refinance jumbo loans

Jumbo loans, which exceed conforming loan limits set by the Federal Housing Finance Agency, generally follow similar rules to conventional mortgages. You can usually refinance a jumbo loan without a mandatory waiting period, though your lender may require a short seasoning period.

Since jumbo loans involve larger amounts and stricter underwriting standards, lenders may be more cautious about immediate refinancing. They often want to see at least one or two mortgage payments before approving a refinance application.

How soon can you refinance FHA loans?

FHA loans require a 210-day waiting period, which means you’ve made six consecutive on-time mortgage payments.

For FHA streamline refinancing, which offers simplified documentation and faster processing, you still need to meet the six-month requirement. Cash-out refinancing with FHA loans typically requires a full 12 months of payment history, making the timeline even longer for homeowners seeking to access their equity.

How soon can you refinance VA loans?

VA loans follow similar timing rules to FHA mortgages, requiring a 210-day waiting period and six consecutive on-time payments. The VA designed these requirements to make sure borrowers demonstrate responsible payment behavior before accessing refinancing benefits. Veterans and active-duty service members must also meet occupancy requirements and show that refinancing provides a clear financial advantage.

How soon can you refinance USDA loans?

USDA loans have a mandatory waiting period, requiring 12 months of payment history before refinancing becomes available. You must make 12 consecutive on-time payments and meet current USDA income and property eligibility requirements.

USDA streamline refinancing may have slightly more flexible requirements, but you'll still need to demonstrate a full year of responsible payment behavior. Cash-out refinancing isn't available with USDA loans, limiting your options if you want to access home equity.

When should you consider a refinance?

Knowing how quickly you can refinance a mortgage is only part of the equation. Understanding when refinancing makes financial sense helps you time your decision for maximum benefit:

— Interest rates drop: When market rates fall below your current rate by at least 0.5%, refinancing can reduce your monthly payments and total interest costs over the loan term.

— Your credit score improves: Better credit can qualify you for lower interest rates, making refinancing worthwhile even if market rates haven't changed dramatically.

— You want to eliminate private mortgage insurance (PMI): Once you reach 20% equity in your home, refinancing can help you remove PMI payments and reduce your monthly housing costs.

— You need cash for home improvements: Cash-out refinancing lets you access your home's equity to fund renovations, which can increase your property value.

— You want to change loan terms: Switching from a 30-year to a 15-year mortgage can save thousands in interest, while extending your term can lower monthly payments.

— You need to remove a co-borrower: Divorce or other life changes may require refinancing to remove someone from your mortgage obligation.

Better offers competitive refinancing options with a streamlined pre-approval process that takes as little as three minutes. You can explore different loan terms and rates upfront without the hassle of extensive paperwork, making it easier to determine if refinancing fits your financial goals.

...in as little as 3 minutes – no credit impact

Key factors to consider before refinancing

Before pursuing a refinance, you’ll want to evaluate several essential factors affecting your eligibility and financial benefits. Your home's equity value is the most significant, as lenders typically require at least 20% equity for the best rates and terms.

Closing costs represent another significant consideration, typically 2–5% of your loan amount. These expenses include appraisal fees, title insurance, and lender charges that can offset potential savings from a lower interest rate. Calculate how long you must wait to break even with these costs through monthly payment savings to ensure refinancing makes financial sense.

If you plan to move within a few years, the upfront refinancing costs might not provide enough time to recoup your investment. Your income, employment stability, and debt-to-income ratio also influence your ability to qualify for better loan terms.

Start your refinancing journey today with Better

Ready to explore your refinancing options? Better offers competitive rates and a quick pre-approval process that helps you understand your potential savings without extensive paperwork. Our technology-driven approach makes refinancing more straightforward and transparent, so you can secure better terms for your mortgage loan while saving time and money.

...in as little as 3 minutes – no credit impact

Frequently asked questions

Does refinancing hurt your credit?

Refinancing typically causes a temporary dip in your credit score due to the hard credit inquiry required during the application process. This impact usually ranges from five to 10 points and recovers within a few months. Shopping for rates with multiple lenders within a 14 to 45 day window counts as a single inquiry, minimizing the credit impact.

Do you need 20% equity to refinance?

While 20% equity helps you qualify for the best rates and avoid private mortgage insurance, many lenders allow refinancing with less equity. Conventional loans require around 10% equity, though you'll likely pay higher rates or additional fees. Government programs like FHA may have more flexible equity requirements.

How long does it take to refinance a house?

The refinancing process typically takes 30 to 45 days from application to closing. This timeline can vary based on your lender's efficiency, the complexity of your financial situation, and current market conditions. Better’s streamlined process can reduce this timeline while ensuring you get competitive rates.

Can you refinance a mortgage at any time?

You can apply for refinancing any time, but when you can refinance depends on your loan type. See our table above for more details.

How soon can you refinance after refinancing?

Most lenders don't restrict how frequently you can refinance, but practical considerations make serial refinancing expensive. You'll need to pay closing costs each time and demonstrate that each refinance provides a clear financial benefit. Wait at least six months between refinances to avoid complications.

How soon should you refinance your home after buying?

The ideal timing depends on market conditions and the waiting requirements for your loan type. If rates drop significantly after your purchase, you might benefit from refinancing as soon as your loan allows. However, consider closing costs and how long you plan to stay in the home.