How Often Can You Refinance?

Learn How Many Times Refinancing Your Home Makes Sense

In theory, you can refinance your home as often as you can get a lender to approve a new loan. In practice, you only want to refinance when it makes sense and is worth your time. You will likely pay closing costs each time you refinance so you want to make sure paying those costs are worthwhile by getting a better rate or better terms. There is usually no limit on how often you can refinance and no right or wrong number of times to refinance—just the number of times refinancing makes financial sense for you.

How Does Your Break-Even Point Affect How Often You Can Refinance?

Your "break-even" point is the moment when the savings you get from refinancing are equal to the closing costs you pay. For example, say by refinancing you saved $100 a month on your mortgage and paid $1,500 in closing costs. This means you will "break even" at 15 months and start saving money at 16 months. In this case, refinancing before 15 months have passed will cost you money. Also keep in mind the longer you save $100 a month, the more money you might save over time.

By refinancing, the total finance charges may be higher over the life of the loan. Considering when your break-even point arrives can help you determine whether refinancing makes financial sense for you.

How Does Net Tangible Benefit Affect How Often You Can Refinance?

A net tangible benefit is a type of refinance requirement lenders like Freedom Mortgage use to make sure refinancing is a good decision for you. A net tangible benefit means you need to get a real benefit from refinancing, such as significantly reducing your interest rate or significantly reducing your monthly payment. Otherwise, you are free to refinance your home as many times as you like when you meet a lender’s credit, income, and financial standards.

How Does Seasoning Affect How Often You Can Refinance?

Seasoning refers to the minimum period you must wait before refinancing. Ensuring you’ve made consistent payments on your existing loan during this seasoning period helps lenders make sure refinancing will benefit you. Seasoning requirements vary by loan type. Keep reading to learn more about how seasoning affects each loan type.

How Often Can You Refinance a Conventional Mortgage?

You often need to wait six months before you refinance a Conventional loan. In some states, you may have to wait more than six months. The seasoning period for a Conventional cash out refinances is 12 months from the initial purchase. Just like with any refinance, compare the value of refinancing against the closing costs and decide if it is a good choice. There are no limits on the number of times you can refinance a Conventional loan assuming you meet our requirements and have a net tangible benefit by refinancing.

How Often Can You Refinance a VA Loan?

There is no limit on how often you can refinance your house with a VA loan. For a VA streamline and cash out refinances, you are required to wait the later of 210 days from the date of the first monthly payment on the loan being refinanced and the date on which the borrower has made six consecutive monthly payments on the loan. To qualify for VA refinancing, you typically need to be current on your mortgage payments and have a recent history of paying your monthly mortgage bill on time. You’ll also need to get a real benefit from refinancing by lowering your rate or improving your terms. Learn more about VA streamline refinancing.

How Often Can You Refinance an FHA Loan?

There are no limits on how often you can refinance with an FHA loan. FHA loans also have a streamline program that requires the borrower to have made at least six payments on the loan being refinanced, at least six months must have passed since the first payment due date and at least 210 days must have passed from the closing date of the mortgage being refinanced.

FHA cash out refinances have a seasoning period of 12 months from the initial purchase. To qualify for FHA refinancing, you need to be current on your mortgage payments, have a recent history of paying your monthly bills when they are due, and receive a real benefit from refinancing. Learn more about FHA streamline refinancing.

Freedom Mortgage is a top VA and FHA lender in the United States according to Inside Mortgage Finance, Jan.–Sep., 2024.

Last reviewed and updated June 2024 by Freedom Mortgage.