How Often Can You Refinance Your Home?

Refinancing your mortgage can be a powerful tool for homeowners—whether you’re aiming for a lower monthly payment, better interest rate, or want to tap into home equity. But how often can you refinance your home without running into complications?

Let’s break it down.

Is There a Limit to How Often You Can Refinance?

Technically, there’s no legal limit to the number of times you can refinance your mortgage. However, lenders may impose waiting periods depending on the loan type and purpose of the refinance.

Common Reasons for Refinancing:

• Lowering your interest rate
• Reducing your monthly payment
• Switching loan terms (e.g., from 30-year to 15-year)
• Changing loan types (from adjustable-rate to fixed-rate)
• Tapping into home equity via a cash-out refinance

While refinancing multiple times is possible, it’s important to understand the rules, costs, and timing involved.

How Soon Can You Refinance After a Previous Refinance?

Here’s a quick breakdown by refinance type:

1. Rate-and-Term Refinance

This is the most common type, often used to secure a better interest rate or loan term.

• Waiting Period: Typically no waiting period for conventional loans.
• Some lenders may prefer you to wait 6 months, especially if you’ve just completed another refinance.

2. Cash-Out Refinance

This lets you borrow against your home equity.

• Waiting Period: Most lenders require you to wait at least 6 months after closing on your original mortgage or last refinance.
• You’ll also typically need at least 20% equity in your home post-refinance.

3. FHA, VA, and USDA Loans

Each government-backed loan has specific refinancing guidelines:

• FHA Streamline Refinance: Requires a 6-month waiting period.
• VA IRRRL (Interest Rate Reduction Refinance Loan): Also requires a 6-month seasoning period.
• USDA Streamlined Assist: Requires 12 months of on-time payments.

Should You Refinance my Home More Than Once?

Just because you can refinance often doesn’t always mean you should. Here are some factors to weigh before moving forward:

1. Closing Costs

Refinancing comes with closing costs, typically 2% to 5% of your loan amount. If the savings don’t offset these costs within a reasonable period, it might not be worth it.

2. Break-Even Point

This is the time it takes for your monthly savings to cover the cost of refinancing. For example, if your refinance saves $150/month but costs $4,000 in closing costs, your break-even point is roughly 27 months.

3. Loan Term Resets

Each refinance may reset your loan term, which could result in more interest paid over time—even with a lower rate.

4. Credit Score & Equity

Frequent refinances can impact your credit, especially if you’re applying for other forms of credit simultaneously. Lenders also look for sufficient home equity before approving another refinance.

Strategic Reasons to Refinance Again

There are several smart scenarios where refinancing again makes sense:

• Significantly lower interest rates available
• Improved credit score since your last refinance
• Desire to switch from ARM to fixed-rate
• Need to eliminate PMI
• Life changes like divorce or a major income shift

The Bottom Line

There’s no hard-and-fast rule about how often you can refinance your home—but being strategic matters. Every refinance should align with your financial goals and timing.

At ALCOVA Mortgage, we’re here to help you navigate the refinance process with confidence. Whether it’s your first time or your third, we’ll walk you through your options and make sure it’s the right move for you.

Ready to Explore a Refinance?

Let’s talk! Connect with an ALCOVA Mortgage expert today to see if refinancing makes sense for your current financial goals.