• There is no limit to the number of times you can refinance your mortgage.
  • Depending on your lender, loan type, and refinance structure, you may need to wait six months to one year between refinances.
  • Each refinance offers potential benefits like lower interest rates, reduced monthly payments, or cash-out opportunities, but each refinance also typically incurs closing costs, so it’s important to make sure the benefit outweighs the costs each time. 

Refinancing a home loan is a long-established strategy for reducing mortgage payments, saving money on interest expenses, and even cashing out some of your home equity for large purchases, home improvement projects, or debt consolidation.

But can you refinance multiple times for greater benefits? If so, how many times can you refinance your home? And how often?

This article will explain:

  • How often you can refinance (refi) your home.
  • What is required for subsequent refinancing.
  • How to determine when refinancing makes sense.  

How Often Can You Refinance Your Home?

There is no set limit to the number of times you can refinance your mortgage. However, there may be waiting period requirements that determine how long you must wait between refinances. These periods can range between six months and one year, depending on a number of factors, including the loan type, lender policies, and your ability to qualify for a new refinance. 

It’s also important to understand that being able to refinance doesn’t necessarily mean you should. For every potential refinance, closing costs and other fees should be weighed carefully against the desired financial outcome of that refi to determine when it makes sense to refinance.

Factors That Can Affect the Viability of Refinancing Multiple Times

To determine whether you can, and just as importantly, should, refinance multiple times, take the following considerations into account when deciding whether or not to go through the process again.

The Financial Outcome of Refinancing

Refinancing is typically done with a specific financial objective in mind. You might, for example, look to lower your mortgage payment and reduce the overall interest expense by securing a lower interest rate. Or perhaps you’d like to lower your monthly payment by spreading the loan balance across a fresh 30-year loan term (knowing that this could result in a greater total interest expense despite the lower monthly payment). You might even be looking to convert some of your home equity into cash through a cash-out refinance. 

The financial success of your refinance depends on the objective. For many homeowners, saving money is the goal, but this is not necessarily the case for those looking to borrow from their home equity. 

Before any refinance, it is important to understand your objective and make sure your goals align with the projected results based on:

  • The change in your monthly payment. How much less (or how much more) will you pay each month after the refinance?
  • The change in the total interest expense paid. How much can you save (or how much more will you pay) in total interest costs over the life of the loan? 
  • The estimated benefit from tapping into your equity when choosing a cash-out refi. Using the funds to add value to your property or consolidate debt, for example, could benefit you financially and potentially improve your quality of life. 

You can experiment with different refinance scenarios using an online refinance calculator. 

Closing Costs, Prepayment Penalties, and the Break-Even Point

Mortgage refinancing typically incurs closing costs, which are expenses associated with underwriting and originating the new loan. These costs may vary by region, lender, and loan type, so it’s important to research the fees or use an online refinance costs calculator to estimate them.

Some lenders offer a no-closing-cost refi, in which you don’t have to pay the closing costs upfront. Instead, they are either rolled into the loan amount or replaced with a slightly higher interest rate. So, while you don’t pay the closing costs directly, the indirect expense should be accounted for. 

It’s also important to consider any prepayment penalties your loan may include. Prepayment penalties are fees charged when a loan is paid off early to help compensate the lender for lost future interest. If your existing mortgage has a prepayment penalty, refinancing it would trigger the prepayment penalty.

To make sure your refinance will be worth the expense, you can calculate the break-even point. The break-even point is the time at which you have saved enough money to cover the expense of the refinance. Simply divide the total refinance costs by the monthly savings amount to see how many months you would need to hold the new mortgage to break even on the decision to refinance. 

Waiting Periods for Loan Types and Refinancing Structures

Different loan types (conventional, FHA loans, VA loans, etc.) and different refinance structures (rate-and-term, cash-out refinance, etc.) can all have different waiting period requirements that determine how often you can refinance your home.

Here is a list of common loan types and refi structures, with their required waiting times (please note that individual lenders may have different requirements or may be able to waive the waiting period in some cases):   

Conventional loan rate and term refinance: Varies by lender

Conventional loan cash-out refinance: At least 12 months since the note date[1]

FHA streamline refinance: At least 210 days from the loan’s closing date and six months from the date the first mortgage payment on that loan was due[2]

FHA cash-out refinance: At least 210 days from the loan’s closing date and six months from the date the first mortgage payment on that loan was due[2]

VA streamline refinance (also called an interest rate reduction refinance loan or IRRRL): At least 210 days, including six consecutive monthly payments made[3]

VA cash-out refinance: At least 210 days, including six consecutive monthly payments made[3]

USDA loans: At least 12 months since the current loan closed[4]

Qualification Criteria

For each refinance, you must re-qualify based on your current financial profile. Qualification criteria vary by lender, loan type, and refinance structure, but may include the following: 

  • Mortgage payment history. Late mortgage payments could potentially require a longer waiting period or even prevent a homeowner from refinancing. 
  • Credit scores. Specific credit score requirements vary by lender, loan type, and the borrower's financial profile, but lenders often look for scores of at least 600-620 for a refinance.    
  • Debt-to-Income (DTI) ratio. Your DTI ratio calculates your monthly debt obligations as a percentage of your pre-tax income to determine the affordability of the new mortgage payments. Many lenders prefer to see that debts total less than 36% of the borrower’s income. 
  • Loan-to-Value (LTV) ratio. A property’s LTV shows how much of the home is leveraged by dividing the loan balance by the property’s current market value (which may require an appraisal to determine). Many lenders require that you maintain at least 20% equity in your home after the loan closes, which equates to having an LTV of 80% or lower.  
  • Lender policies. Some lenders may require longer waiting periods between refinances than the minimums, particularly if there are increased risk factors, such as late mortgage payments or lower credit scores.  

Pros and Cons of Multiple Refinances

The potential advantages of refinancing more than once include:

  • Lower interest rates. If rates have gone down since your current loan was originated, or if you qualify for a lower rate now based on credit score or financial profile improvements, securing a lower rate may reduce your monthly payment and your overall interest expense.
  • Change in loan term. Shortening your loan term could help you become debt-free faster, while extending your loan term could reduce your monthly payment.
  • Change in interest rate type. If you currently have an adjustable-rate mortgage (ARM), refinancing to a fixed-rate mortgage could provide more consistent payment amounts over the long term. On the other hand, if you have a fixed-rate mortgage, but prefer the lower initial payments offered by an ARM, you might consider refinancing to an ARM.
  • Removing mortgage insurance. If your current loan requires mortgage insurance, but you now meet the criteria for a mortgage-insurance-free loan, refinancing could potentially remove the mortgage insurance expense from your monthly payments.
  • Accessing some of your home equity. Cash-out refinancing may provide funds for important projects, expenses, or purchases, without the need for a second mortgage.      

The potential downsides of refinancing multiple times include:

  • Closing costs. Whether the fees are paid upfront, rolled into the loan, or exchanged for a higher interest rate, they are incurred each time you refinance.
  • Resetting the loan term. Refinancing into a new 30-year mortgage multiple times may delay your payoff date and increase the long-term interest paid.
  • Temporary credit score dip. Each refi constitutes a new loan, which may decrease the length of your average credit line and temporarily decrease your credit score. Additionally, the refi application process may involve a credit inquiry (a "hard credit pull"), which may take a few points off your score. However, with consistent on-time payments, your score may bounce back stronger. 
  • Equity decrease in a cash-out refi. With cash-out refis, your loan balance increases, and your equity in the home dips. Over time, as you repay the balance, you may rebuild your equity (especially if property values increase).

Final Thoughts on Refinancing Your Home Multiple Times

Even if you just refinanced last year, changing market conditions or financial goals could make another refinance worthwhile if it results in a lower interest rate, reduced mortgage payments, or funds in your pocket. 

Before initiating a subsequent refinance, make sure you meet any seasoning period required by your lender, as well as the general qualification requirements for refinancing. And compare the estimated benefits against the costs to ensure that refinancing again is the right decision for you.