Refinancing out of seller financing works like any other refinance: the new loan pays off the old lien, whoever holds it. There is a myth that seller financing is somehow harder to refinance out of, and it usually is not. The new lender does not much care whether the existing lien is seller financing, FHA, conventional, VA, or even a reverse mortgage. Once you have the equity and you qualify for the new loan, the mechanics are ordinary: you request a payoff demand from whoever holds the note, exactly as you would from any servicer, and the new loan pays it off at closing. The one real complication is the note itself. A seller-financing or hard money agreement can include terms meant to discourage an early payoff, most commonly a prepayment penalty. A seller might offer an attractive rate but attach a multi-year prepayment penalty specifically so you cannot quickly refinance away if rates drop. So before you count on refinancing on any particular timeline, read your note for prepayment penalties or payoff restrictions. If the note is clean, build the equity, qualify, and refinance like anyone else.