How Often Can You Refinance Your Home? (2024)

Refinancing multiple times can be beneficial for several reasons. Below, we’ll look at some situations where another refinance could be to your advantage.

If You Want To Obtain A Lower Interest Rate

You may want to refinance your loan again to take advantage of a lower interest rate. You can almost always save money if you’re able to lower your interest rate without changing the term of your loan.

If You Want To Change Your Loan Term

Income changes can happen at a moment’s notice. If your income has increased, you may want to refinance into a shorter loan term – maybe from a 30-year to a 15-year term – so you can pay your mortgage off earlier. If your income has decreased, you may want to refinance into another 30-year term to lower your monthly mortgage payment.

However, remember that every time you refinance your loan to a longer term, you increase the amount you pay in interest.

If You Want To Eliminate PMI Or Your Mortgage Insurance Premium

Did you buy your home with a conventional loan and a down payment of less than 20%? If so, you’re probably counting the days until you can eliminate your private mortgage insurance (PMI) payment.

PMI is a special type of insurance that protects your lender if you default on your loan. PMI offers you no protection as the homeowner, but you must still pay the recurring premiums as a condition of your loan. When you reach the 20% home equity threshold on a conventional loan, you can ask your lender to cancel PMI if they haven’t done so automatically.

You may also want to refinance from an FHA loan to a conventional loan when you reach 20% equity. With a Federal Housing Administration (FHA) loan, you must pay a mortgage insurance premium throughout the duration of the loan if you have a down payment of less than 10%. However, if you refinance from an FHA loan to a conventional loan, you won't have to pay for your lender’s insurance as long as you have at least 20% equity in your home.

FAQs

How Often Can You Refinance Your Home? ›

Legally speaking, there's no limit to how many times you can refinance your mortgage, so you can refinance as often as it makes financial sense for you. Depending on your lender and the type of loan, though, you might encounter a waiting period — also called a seasoning requirement.

Find Out More ›

Is there a limit on how many times you can refinance your home? ›

Legally, there isn't a limit on how many times you can refinance your home loan. However, mortgage lenders do have a few mortgage refinance requirements you'll need to meet each time you apply for a loan, and some special considerations are important to note if you want a cash-out refinance.

Keep Reading ›

How long do you have to wait between refinancing your home? ›

In many cases, there's no waiting period to refinance. Your current lender might ask you to wait six months between loans, but you're free to simply refinance with a different lender instead. However, you must wait six months after your most recent closing (usually 180 days) to refinance if you're taking cash out.

View Details ›

Is there a downside to refinancing multiple times? ›

It doesn't always make sense to keep refinancing your home simply because interest rates go down or your credit score goes up. Like your first mortgage, a refinance has closing costs. Each time you refinance, you'll have to pay fees, such as for the application, appraisal, credit check, attorney and title search.