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How often can you refinance your home?

Though there’s no limit on how often, most lenders require you to wait between refinances.

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Kimberly Ellis
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Refinance your mortgage to take advantage of lower interest rates, change your loan terms or get rid of private mortgage insurance (PMI). But if you’ve refinanced once and you’re considering doing it again, make sure it makes financial sense to do so.

Refinance as often as you want

Refinance your mortgage as many times as you need. While there is no legal limit to the number of refinances you can make on a property, there are some conditions your mortgage must meet. Many lenders require a seasoning period, or time between refinances.

Some home loans require a waiting period

A seasoning or waiting period is a mandatory period before you can reapply for a mortgage refinance. The length of time depends on the kind of loan you have, but can stretch between six months up to two years.

Loan typeWaiting period
Conventional refinance
  • Generally, no waiting period
FHA streamline refinance
  • 210 days from the most recent closing date
  • Six payments before applying
VA streamline refinance
  • 210 days from the due date of the first monthly payment
  • Six consecutive mortgage payments
USDA streamlined assist refinance
  • 12 months of mortgage payments
Reverse mortgage refinance
  • 18 months

A cash-out refinance has specific rules. You’ll need to wait at least six months from closing before applying for a new cash-out mortgage refinance. Exceptions apply if:

  • You inherited the property.
  • You were awarded the property from a divorce or separation order.
  • The cash-out refinance qualifies for Fannie Mae’s delayed finance rule because you paid for the property in cash.

Carefully consider before refinancing

Even though you technically can refinance your mortgage multiple times, it may not always be a good idea. Here are a few reasons to refinance again and a few points to consider before going through with it.

Reasons you might want to refinance again

Borrowers consider refinancing their mortgage for a variety of reasons, including:

  • Better offer. You don’t have to use the same lender for your refinance. Shop around to find the most competitive terms.
  • Lower rates. When interest rates drop, take advantage by refinancing.
  • Changing loan terms. Save on interest over the life of your loan by changing your mortgage terms. Shortening your loan terms can increase your monthly mortgage payment, so make sure it’s manageable for you.
  • Eliminating mortgage insurance. If you’ve built 20% equity in your home, refinance an FHA loan to a conventional loan to drop mortgage insurance.

4 things to consider before refinancing again

Refinancing isn’t always the best idea. Think about the following before you decide:

  • New closing costs. Refinancing is a new loan, so you’ll pay closing costs. These fees vary by lender but likely run between 2% to 5% of the loan amount. So a $200,000 mortgage refinance might run you between $4,000 to $10,000 in closing costs.
  • Breakeven point. If you plan on selling your home soon, you might not recoup your closing costs in your monthly savings.
  • Early repayment fees. If you use a new lender for a refinance, find out if your old lender imposes a prepayment penalty for closing your loans early.
  • Hard credit pull. As part of the approval process, your lender will need to perform a hard pull of your credit report. This will result in a temporary dip in your credit score.

6 steps to refinance

If you’re ready to refinance again, here’s how to go about it.

  1. Estimate your home’s value. Get an idea of what your property is worth by researching recent sales of similar homes in the area.
  2. Compare lenders and rates. Shortlist lenders and loan programs that you may be eligible for before you start applying. It’s better to get a few loan estimates within the same 45-day period to avoid unnecessary dings to your credit score.
  3. Apply for the loan. Review the loan offer and fees. Make sure that it makes financial sense to get a refinance.
  4. Get an appraisal. Your lender will order a home appraisal. If the appraisal report comes back higher or lower than what the lender originally estimated, your loan terms may change.
  5. Submit documentation. Collect and submit all necessary paperwork, such as bank statements and tax returns.
  6. Close on the loan. Sign your loan documents, and your new lender pays off your existing home loan.

Bottom line

Technically, refinancing can happen as often as you like. Most refinance programs require you to wait at least six months between transactions. You’ll also need to have enough equity and the right borrower criteria to qualify for a mortgage refinance.

But even though you can refinance, make sure it makes financial sense. Use a mortgage refinance calculator to see how much you stand to save.

Frequently asked questions

How do you refinance your mortgage with another lender?

Although your current lender may offer extra incentives to keep your business, shop around to find the best loan terms and interest rates.

How can you refinance with bad credit?

Even if you have poor credit, you can still refinance your mortgage. For example, borrowers with a credit score as low as 580 may qualify for an FHA rate-and-term refinance. And some loan programs don’t require a credit check at all.

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