Refinance Current Home Then Buy New -

Homeowners typically use one of two refinancing methods to secure funds for a new purchase:

: A short-term loan designed specifically to "bridge" the gap between buying a new home and selling your old one. It allows you to borrow up to 80% of your current home's value to cover the new down payment. Essential Timing & Wait Periods How Soon Can You Refinance a Mortgage? | 2026 refinance current home then buy new

Refinancing your current home to buy a new one is a strategic way to leverage existing equity for a down payment or to improve your debt-to-income ratio (DTI) before applying for a new mortgage. However, this path involves strict timing requirements, potential tax impacts, and occupancy clauses that could lead to legal issues if ignored. Core Strategies for Leveraging Equity Homeowners typically use one of two refinancing methods

: You replace your current mortgage with a larger one and receive the difference in a lump sum. This cash can then be used as a down payment for the new home. | 2026 Refinancing your current home to buy