How Long Does It Take to Refinance? A Long Island Timeline

Nationally, refinances averaged 39 days to close in March 2026. “How long will this take?” is one of the first things people ask me. If you’re still deciding, start with my guide to refinancing on Long Island.

How long does it take to refinance?

The average refinance took 39 days to close in March 2026, according to ICE, a mortgage data company. That’s a national average, not a promise.

Three things usually add time: a co-op, a flood zone, or a CEMA (a New York refinance that can reduce the mortgage recording tax). If one of those applies to you, I’ll tell you right away what to expect.

The refinance steps, start to finish

Most of the waiting happens in steps 3 to 5.

1. Apply. Within a few days you get a Loan Estimate, a form with the loan’s terms and estimated costs.
2. Lock your rate. The lender holds your rate for a set number of days. Extending a lock can cost money.
3. Send your documents. My mortgage document checklist shows what to send.
4. Appraisal. An appraiser checks what your home is worth. You may not need one on an FHA or VA streamline refinance or some Fannie Mae loans, but the lender makes that call.
5. Underwriting, title and payoff. The lender reviews your file, and a title search checks public records for old loans or other claims still tied to the home. Your current mortgage company sends a payoff letter with the exact amount to pay off your loan.
6. Signing. You get your final numbers, the Closing Disclosure, at least 3 business days before you sign.
7. Funding and payoff. On your primary home, the loan funds a few days after you sign, once a short cancel period passes. That’s when the money moves and the new loan pays off the old one.

Why is my refinance taking so long?

When a refinance drags, it’s usually one of these:

• The appraisal. Getting on the appraiser’s calendar takes time, and a low value can change the loan.
• Title problems. The search can find an old mortgage that was paid off years ago but never marked paid. Fixing it usually means tracking down that lender or the company that took it over.
• Income paperwork. If you’re self-employed, tax returns usually take longest. Here’s the self-employed list, and how lenders count that income.
• A condo or co-op. The building has its own paperwork, and a co-op can’t skip the appraisal on a Fannie Mae loan. I do co-op loans, and I’ve closed some that other loan officers couldn’t get done.
• A flood zone. In a FEMA high-risk flood zone (zones starting with A or V), the new lender will generally require flood insurance. Better to find that out early than the week before closing.
• A home equity line you’re keeping. Its lender usually has to sign an agreement to stay behind your new mortgage, which can add time.

If you’re doing a CEMA

In a CEMA, your old mortgage isn’t paid off. Your current lender transfers it to the new lender. My refinance guide explains how that can lower the recording tax.

The catch is time. A CEMA depends on your current lender sending over its paperwork, and some lenders are slower than others. If you’re doing one, plan on a longer rate lock so it doesn’t run out while you wait.

Do you skip a mortgage payment when you refinance?

Not really. Mortgage interest is paid after the month it’s for, so your payment on the 1st covers last month’s interest. A refinance moves that interest around:

• The payoff includes interest on the old loan up to the payoff day.
• At closing you prepay interest on the new loan, usually from the day it funds to the end of that month.
• Your first new payment is usually due on the 1st of the second month after funding.

Say your loan funds Monday, November 16, 2026, and you prepay interest for November 16 to 30. Nothing is due December 1. Your first payment is due January 1, 2027, and covers December.

Watch out for ads that pitch a skipped payment. VA and the federal Consumer Financial Protection Bureau have warned that it’s generally just added to your loan.

What happens to your escrow account when you refinance?

Escrow is the account your mortgage company uses to pay your property taxes and homeowners insurance. With a new lender, you fund a new account at closing, then get the old balance back.

• The refund has to come within about four weeks of the payoff (20 business days).
• The new deposit. New York’s Department of Financial Services says to expect one to two extra months of taxes and insurance. Plan on that money being tied up until the old balance comes back.
• Refinancing with your current lender? The old balance can move straight to the new account if you agree.

The STAR credit, New York’s school tax credit, never goes into escrow. The state pays it to you by check or direct deposit.

Long Island property taxes and your refinance closing

Tax bills here come due on fixed dates. If you close near one, ask the closing attorney who’s paying it, so it isn’t missed or paid twice.

These are the dates for bills paid to your town. Villages, Glen Cove and Long Beach set some dates of their own. For STAR and the full calendars, see my Nassau County and Suffolk County guides.

My checklist for the last two weeks

• Keep paying your current mortgage until it’s paid off.
• Don’t open new credit or take on new debt. Tell me first if something has to change.
• Get back to the appraiser, title company and attorneys the same day they reach out.
• Compare your final numbers with your Loan Estimate, line by line.
• Confirm wiring instructions by calling the attorney at a number you already have.

Refinance date planner

Frequently asked questions