How Long Does It Take to Get Money After Refinancing Your Mortgage?

Refinancing your mortgage can be a great way to lower your interest rate, shorten your loan term, or pull cash out of your home equity. But after going through the application process, getting approved, and signing your closing paperwork, many homeowners want to know – when will I actually get the money?

Here’s a look at the typical refinance timeline and how long you can expect to wait to get your hands on the cash after refinancing

The Refinance Process Timeline

A typical refinance takes between 30-60 days to complete Here are the key steps in the process and how long each takes

Initial Application and Processing (Days 1-7)

You’ll start by submitting your application and supporting documents to your lender. They’ll review your information, run your credit report, and provide you with loan estimates within 3 days. Plan for about a week for processing your application.

Underwriting and Appraisal (Days 7-14)

Your file will go through underwriting where the lender verifies your employment, income, assets, and debts. Most refinances also require a home appraisal which takes about 1 week to schedule and complete.

Closing Paperwork and Funding (Days 14-30+)

Once approved, you’ll get a closing disclosure 3 days before your closing appointment. This is when you’ll sign the final loan documents. Funding can take anywhere from 2 days to 2+ weeks depending on the type of refinance.

Recording and Funds Disbursement (Days 30-45)

After signing, the lender records your new mortgage with the county and disburses funds. Expect to wait about 3-5 days for funds after closing a refinance.

So in total, plan for around 30-45 days from application to getting the money in your hand. Next, let’s look more closely at that final funding timeline.

When Do You Get the Money After Closing?

Many borrowers want to know exactly when they’ll have access to funds after refinancing. Here’s what to expect:

Refinancing with the Same Lender

If you refinance with your existing lender, they can disburse funds directly into your account 1-2 days after closing. This is the fastest funding option since they already have your account information on file.

Refinancing with a New Lender

When refinancing with a new lender, it takes 3-5 days to receive funds. The lender has to wire the money to your account which adds a couple days.

The delay is also due to the “right of rescission”. Federal law gives you 3 days to change your mind and cancel the refinance after closing. The lender can’t officially fund the loan until after this rescission period ends.

Cash-Out Refinance

With a cash-out refinance, you’ll wait about 30 days from closing to receive your funds. Most lenders can’t disburse the cash to you until after your new loan has been recorded and your existing mortgage has been paid off. This takes 3-4 weeks on average.

Refinancing an Investment Property

Investment property refinances tend to have the longest funding timeline of 4-6 weeks. Some lenders require extra underwriting and want to see the first 1-2 payments made before disbursing cash-out proceeds.

Factors That Speed Up or Delay Funding

While the above timeframes are typical, your specific circumstances could result in getting funds faster or slower:

Faster Funding

• Refinancing with same lender
• Low loan-to-value ratio
• Strong credit and income
• Smooth appraisal with no issues

Slower Funding

• Refinancing investment property
• High debt-to-income ratio
• Appraisal problems or disputes
• Title work complications

Tips for Managing the Waiting Period

Waiting 30+ days for access to your money after refinancing can feel frustrating. Here are some tips for dealing with the wait time:

• Don’t schedule projects or expenses that require the cash right away
• Keep making mortgage payments on your old loan until funded
• Ask lender for status updates if passed expected timelines
• Be flexible – delays can happen!

Most importantly, make sure you have a financial plan in place to bridge the gap between closing and funding. Having extra cash in savings prevents scrambling if the refi takes longer than expected.

The Bottom Line

While refinancing can save you money in interest and allow you to tap equity, it does take about a month from start to finish. The funding timeline ranges from:

• 1-2 days for same lender refi
• 3-5 days after closing for new lender
• 30 days for a cash-out refinance

Knowing what to expect for the refinancing process and funding delays allows you to plan your finances accordingly. Be sure to communicate with your lender and give yourself a buffer in case it takes longer than average to get your new lower mortgage payment and cash-out proceeds.

Funds from a refinance are generally disbursed within 3-5 business days after the loan closes. This is due to the mandatory three-day rescission period for owner-occupied homes, where borrowers can cancel the transaction.