How Often Can You Refinance Your Home?

How Often Can You Refinance Your Mortgage?

You can refinance your home as many times as you want and can qualify to do so. However, depending on your lender and the type of mortgage, there may be a waiting period before you can refinance again.

There are also costs associated with refinancing a mortgage that can quickly cut into the cost-effectiveness of doing so if you refinance too frequently.

Learn more: How Does Refinancing a Mortgage Work?

How Soon Can You Refinance Your Mortgage?

Some lenders allow you to refinance right away; others mandate what's called a seasoning period before they will let you refinance again. This seasoning period typically ranges from six months to 12 months after the closing date on your original loan, but can be as long as 24 months.

• You can generally refinance a conventional mortgage immediately, but must wait six months before doing a cash-out refinance.
• If you've had a mortgage modification, you'll usually have to wait 12 to 24 months from the date of modification before you can refinance.

Refinancing a government-backed mortgage—such as those insured by the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) or U.S. Department of Agriculture (USDA)—into a new government-backed mortgage has the following seasoning periods:

• VA loans: 210 days after your closing date or the date of your first payment, depending on the type of mortgage you're applying for
• FHA loans: 210 days after your closing date; you must also have made at least six loan payments
• USDA loans: 12 months

There's no waiting period to refinance from a government-backed mortgage into a conventional mortgage.

Learn more: Types of Mortgage Refinances

Pros and Cons of Refinancing Your Mortgage Multiple Times

You can refinance your mortgage as often as you like-but should you? Consider the pros and cons before applying for another refinance.

Learn more: Should You Refinance Your Home to Pay Off Debt?

Reasons to Refinance Your Home Multiple Times

Even if you've already refinanced your mortgage once (or twice), here are some situations where it might make sense to refinance again.

• Interest rates have dropped significantly. If you can qualify for a new interest rate at least 0.5% lower than your current rate, you'll generally save enough to make refinancing worthwhile.
• Your credit score has improved. Even if interest rates haven't moved much, a higher credit score could make you eligible for a lower APR on your new mortgage.
• You want to add another borrower. For instance, if you've gotten married since getting your mortgage or an adult child has moved in with you, their income and credit score could help you qualify for lower interest rates.
• You want to swap an FHA loan for a conventional mortgage. FHA loans can require paying mortgage insurance premiums for the life of your loan. Once your loan balance is below 80% of your home's value, refinancing to a conventional loan can eliminate mortgage insurance, saving you money.

Learn more: Pros and Cons of Refinancing Your Home

What to Consider Before Refinancing Again

You might want to avoid refinancing again if:

• You plan to move soon. When deciding if refinancing is worthwhile, divide your closing costs by the monthly reduction in payments to get your break-even point. For instance, if your closing costs are $6,000 and you'll save $150 a month on your payments, you'd need to stay in the home for 40 months (without refinancing again) to break even.
• You will pay high closing costs or fees. Higher closing costs can mean taking longer to break even. If closing costs are rolled into your loan, you'll pay interest on them too.
• Your credit score has dropped. A lower credit score could make it harder to get approved for a new mortgage, or to qualify for a lower interest rate if you are approved.
• Your mortgage has a prepayment penalty. Although it's increasingly rare, some mortgages charge penalties for paying the loan off early; these can be up to 2% of your outstanding balance. Consider any prepayment penalty when calculating if refinancing makes financial sense.

Learn more: Reasons Not to Refinance Your Home

Alternatives to Refinancing Your Home

If you can't or don't want to refinance your home again, consider these alternatives to save money and reach your financial goals.

• Make extra principal payments. Putting more money toward principal each month can help you pay off your mortgage faster without the expense and hassle of refinancing.
• Recast your mortgage. If you're happy with your loan term and interest rate, want lower monthly payments and have received a windfall such as a big work bonus, mortgage recasting can help. You make a large lump-sum payment toward principal; your lender revises your monthly payments based on the new, lower balance.
• Request a mortgage modification. If financial hardship has you struggling to pay your mortgage, ask your loan servicer about a mortgage modification, which adjusts your loan terms to reduce your monthly payment.
• Get a second mortgage. A home equity loan or home equity line of credit (HELOC) lets you borrow against the equity in your home. Both use your home as collateral, so you could lose your home if you can't repay the loan.
• Take out a debt consolidation loan. Using one loan to consolidate debt into a single payment with a lower interest rate can save you money and streamline repayment.
• Get a balance transfer card. Use a balance transfer credit card with an introductory 0% APR to pay off high-interest debt. Then pay off the card before the promotional period ends, and you won't pay any interest.
• Enlist a credit counselor. Are you considering refinancing due to overwhelming debt? A nonprofit credit counselor can help you figure out how to pay off your debt, possibly including a debt management plan.

The Bottom Line

It's possible to refinance your mortgage as many times as you want, but before doing so, you should carefully weigh the costs and benefits. If you've decided refinancing your home is the right move, start by checking your credit report and FICO^® Score^☉ for free from Experian. You'll generally need a credit score of 620 or above to be eligible for refinancing, but higher scores can help you qualify for more favorable loan terms.

If your credit score isn't where you'd like it to be, take steps to improve your credit by paying down debt and paying bills on time. You can use Experian's free credit monitoring service to get alerts of important changes to your credit report and keep tabs on your progress toward increasing your credit score.