How Often Can You Refinance Your Home Mortgage?

If you’re thinking about refinancing your mortgage for the first time, you’re probably wondering how it could impact your future options. For example, how often can you refinance your home loan if rates drop later? And what if you need to cash in your home’s equity down the road? 

The short answer: there’s no strict limit on how often you can refinance your home. That said, important factors like timing, lender rules, and closing costs can affect whether refinancing again makes sense. 

Key takeaways  

• There’s no official limit to how often you can refinance your home, but lender guidelines still apply. 
• Depending on your mortgage type, lenders may require 6 to 12 months of on-time payments before you can refinance. 
• Refinancing comes with closing costs — typically 2% to 6% of your loan amount — so it’s important to calculate your break-even point to ensure the long-term savings are worth the upfront expenses. 
• Regardless of how often you refinance, always make sure you have a clear goal, review the numbers, and ensure timing and benefits align with your financial situation. 

How soon can you refinance for the first (or second) time? 

Refinancing replaces your current mortgage with a new loan, and you can usually do so within a year if you’re making consistent payments. 

For most conventional loans, lenders prefer you’ve first made at least six monthly payments. For government-backed loans like FHA or VA, there’s usually a mandatory waiting period of six to 12 months, plus a requirement for on-time payments. 

If you’ve already refinanced once, you may need to build additional equity or meet seasoning requirements (having funds for closing costs and other expenses on hand for 60 to 90 days) before doing it again.  

Reasons you might refinance more than once 

Even if you’ve already refinanced your home loan, doing it again could make sense for you and your family. A few of the most common reasons to refinance more than once include: 

You can get a lower interest rate 

Mortgage rates are always changing, and so is your credit. If market rates drop or your credit score improves, you might qualify for an interest rate that’s lower than what you’re paying now. 

Even a 0.5% to 1% rate decrease could lower your monthly payments and save you thousands of dollars over the life of your home loan.  

You need different repayment terms 

Mortgage refinancing is also the main way to adjust the length of your loan — switching from, say, a 30-year loan to a 15-year loan. Making a change like this could help you pay off your home faster and save interest along the way, but it could also raise your monthly payments. 

On the other hand, extending your term (i.e., from 15 to 30 years) can reduce your monthly mortgage payments. However, it will increase the total interest you pay over the life of your loan. 

You want to stop paying mortgage insurance 

Private mortgage insurance (PMI) is a fee lenders charge to protect themselves when you put down less than 20% on your home. In other words, it helps balance the risk on your mortgage. 

If you have a conventional loan and you pay monthly PMI, you may be able to cancel this added fee once you reach 20% equity — no refinance needed. If you have an FHA loan, however, removing the PMI fee requires that you refinance into a conventional loan once you’ve built 20% equity. 

You need a large sum of cash 

A cash-out refinance allows you to borrow against your home’s equity and receive the difference in cash. You can use the funds for major expenses like home improvements, education, or consolidating high-interest debt. 

Unlike personal loans or credit cards, this option may offer lower interest rates since it’s secured by your home. It’s a popular choice for homeowners who need access to cash without taking out a separate personal loan or line of credit. Just keep in mind that your new mortgage balance will be higher because you’re borrowing more. 

Things to consider before refinancing again 

Even if you stand to gain a better rate or other benefit, it’s still important to consider the full picture of whether you should refinance. Before moving forward, weigh all the pros and cons to decide if the timing is right. 

Here are some important things to consider: 

Are you prepared to pay closing costs? 

Every mortgage refinance comes with closing costs, which will usually range between 2% and 6% of your loan amount. So, if you refinance a $300,000 loan, you could pay between $6,000 and $18,000 in fees. These costs may include things like appraisal fees, title insurance, or loan origination fees. Some lenders offer no-closing-cost refinances, but those usually come with higher interest rates and other hidden costs. 

Before refinancing, run a break-even calculation. This helps you determine how long it will take for your monthly savings to offset these upfront costs. For example, if refinancing saves you $200 a month but costs you $6,000 in closing fees, a simple division formula tells you it would take 30 months (or 2.5 years) to reach the break-even point. 

• Total Fees ($6,000) ÷ Monthly Savings ($200) = Break-Even Point (30 months) 

If you’re planning on staying in your home longer than this, a refinance might make sense. But if not, refinancing your mortgage may not benefit you. 

Do you meet lender criteria? 

In order to refinance your mortgage, lenders will typically look at your credit score, income, dept-to-income (DTI) ratio, and how much equity you have in your home. Most will prefer a credit score of at least 650 for a conventional loan, but keep in mind that higher scores can help you secure a lower interest rate. 

If your credit and financial situation has improved since your last loan, this may put you in a stronger position to refinance. 

Will you pay any penalties? 

Some mortgages include a prepayment penalty — an extra fee if you pay off your loan early. This includes when you refinance your loan. 

These penalties aren’t common, but they can still appear in certain loan agreements, especially if your loan is relatively new. Check your loan documents or ask your lender to see if a prepayment penalty applies to you. 

If such a penalty does exist, you’ll need to factor the fee into your total refinance cost when running your break-even calculation. 

Deciding if refinancing again makes sense 

When it comes to how often you can refinance your home loan, the real question is whether doing it again supports your financial goals now and over the long term. If the timing, costs, and benefits line up, refinancing can be a smart move. 

Before you move forward with a refinance, make sure you define a clear goal, understand how long it’ll take you to break even, and shop around to compare loan options. A trusted lender can help you explore all your options and guide you through the steps. 

Ready to see what refinancing could look like for you? Get a personalized quote from AmeriSave today. 

Frequently asked questions  

How many times can you refinance your home? 

Legally, there’s no limit to how many times you can refinance your home loan. You can do it as often as you qualify. Just be aware that each time you do so, you’ll need to meet lender requirements and pay closing costs. The key is to make sure the financial benefits outweigh the expenses. 

How long after you buy a house can you refinance? 

For most conventional loans, you can refinance as soon as you want. Many lenders prefer you make at least six months’ worth of payments first. In contrast, government-backed mortgages, like FHA or VA loans, often have specific waiting periods (typically 6 to 12 months) and on-time payment requirements you must meet before you’re eligible to refinance. 

Are there any downsides of refinancing a house? 

There could be. While refinancing can save you money, it’s not universally the right move for everyone. It requires paying closing costs, may reset your loan term, and could extend your debt timeline. You might also lose certain benefits tied to your current mortgage. This is why you should always weigh the costs and run the numbers before committing to refinance your home loan.