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How Often Can You Refinance Your Home?
What you'll learn: What you need to know about refinancing and how often you are allowed to do so.
EXPECTED READ TIME: 3 MINUTES
February 12, 2025
Refinancing can be a powerful tool. It can provide you with the ability to reduce your monthly payments, update loan terms, or turn home equity into usable funds. That said, it is important to ensure it makes financial sense for your unique situation and goals. And if you have already refinanced in the past, you may be wondering if you have the option to do so again in the future.
Today, we will explain how often you can refinance, when it makes sense, and more.
How many times can you refinance your mortgage?
As long as there is a net benefit to refinancing, you can do so as often as you want. Though it may depend on your lender and the type of mortgage you have, no legal restrictions are in place to determine how often you are allowed to refinance your mortgage.
Is refinancing more than once recommended?
Multiple refinances is not highly recommended because there will be closing costs you have to pay each time. Some lenders do offer no closing cost refinance options, but that does not mean the fees are completely eliminated. Instead, they are wrapped into the total loan amount, which increases its balance. This can be a viable option if you do not have upfront cash available for a refinance, however you will still end up paying for closing costs in the long run.
At a certain point, if you refinance too many times, your savings will not end up outweighing the overall costs.
How soon can you refinance a mortgage?
You do have to wait a certain amount of time between each refinance. Different types of mortgages and refinances have a what is known as a mandatory seasoning requirement. This means there is a set amount of time you must wait until you are allowed to apply to replace your current mortgage.
For example, most conventional loans have a six-month seasoning period for before borrowers are eligible for a refinance. For Federal Housing Administration (FHA) borrowers who are interested in a streamline refinance, the timeline starts the day you close on the home loan. Once you have surpassed 210 days, then you are eligible to apply. Cash-out refinances allow borrowers to receive a cash surplus at closing, but you will have to wait until you have built up enough home equity. You are typically required to have at least 20% equity in the home in order to be eligible.
What are the costs of refinancing?
For any homeowner who is interested in refinancing, it important to ensure the potential savings outweigh your initial costs. Even a simple rate and term refinance will come with a few up-front costs, including:
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Origination fees
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Appraisal fees
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Title fees—you will need to document the title of the property
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Attorney fees
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Recording fees
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Points—you can pay mortgage points just like during a purchase, in which one point represents 1% of the loan amount
It is also important to remember that it may take a little while, often many months, for you to break even. That will depend on how much you pay out of pocket at closing, plus the rate difference between your current mortgage and the new loan.
When does it make sense to refinance again?
There are many reasons to consider another refinance, including:
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Obtaining a lower rate
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Reducing your monthly payments
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Shortening your mortgage term to pay it off sooner
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Changing from an adjustable rate to a fixed rate
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Tapping into your equity for cash
The possibilities are seemingly endless, but it is important to take a hard look at your personal situation to determine if refinancing again will benefit your fiscal future. For instance, if you plan on moving to a new home in the next few years, then you may not end up breaking even on the initial refinancing costs. In that case, it is probably better to hold off and instead focus on preparing to jump back into the homebuying and selling process. Be sure to explore the different types of refinance options that may be available before you start applying again. That way, you can be sure you are choosing the right refinance for your needs.
Every homeowner has their own unique needs, but it can be helpful to know that refinancing your home more than once is not as uncommon as you may think. The option is available, so be sure to discuss if it is right for you with a trusted lender.
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Home Buying Steps
Mortgage Products
Disclosures
1Conventional Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
2FHA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.0 discount point, which equals 1.0 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 96.5%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
3VA Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 1.125 discount point, which equals 1.125 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $450,000; loan-to-value ratio of 95%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of $995.
4Jumbo Loans
Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 0.625 discount point, which equals 0.625 percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, non-conforming, fixed-rate loan. Loan amount of $1,009,000; loan-to-value ratio of 70%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.
Rates quoted require a loan origination fee of 1%; not to exceed $1,995. Speak to a PenFed Mortgage Loan Officer for additional details.
Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Advance Period. During your Advance Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.
Routing #256078446
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