How Many Times Can You Refinance a House?

You can refinance your house as many times as you want as long as you meet your lender’s requirements. But should you? Refinancing can lower your rate or unlock home equity, but doing it too often could have consequences.

Plus, some lenders set rules on how soon you can refinance. Understanding these limits (and the risks of multiple refinances) can help you decide your next steps.

Table of Contents

1. How many times can you refinance your home mortgage? 
2. Is it bad to refinance your home multiple times?
3. When should you refinance your home again?
4. When you should wait to refinance your mortgage again
5. Alternatives to refinancing your mortgage again
6. How to choose a refinancing lender

How many times can you refinance your home mortgage? 

There’s no limit to how many times you can refinance your mortgage. But that doesn’t mean you can apply right away. Some lenders make you wait a certain number of months before you can refinance. These waiting periods, known as seasoning periods, often depend on your loan type or lender policies.

One reason for seasoning periods is the early payoff (EPO) rule, which penalizes lenders if you refinance or pay off your loan too soon—typically within four or six months. EPO penalties can cause loan officers to lose their commissions. 

As a result, many lenders enforce a six-month waiting period for traditional refinances, depending on their risk tolerance and internal policies.

Tip

You can refinance as often as you want, but it’s up to the lender how soon it will let you do it.

When can you refinance your home?

Your ability to refinance depends on your loan type and lender rules. Some programs, like FHA and VA loans, have strict waiting periods. Others, such as conventional loans, may allow you to refinance immediately, unless the lender enforces an EPO-related seasoning period.

Here’s a guide to typical refinance waiting periods by loan type:

Mortgage program	Waiting requirement before refinancing
Conventional loan	0 – 6 months
FHA loan	210 days and 6 on-time payments
VA loan	210 days and six on-time payments (IRRRL)
USDA loan	12 months
Jumbo loan	0 – 6 months
Cash-out refinance	6 – 12 months

Is it bad to refinance your home multiple times?

Refinancing multiple times isn’t automatically bad. But it can hurt you if you do it for the wrong reasons.

Each refinance comes with closing costs, which can add up fast if you aren’t saving enough to justify them. Plus, restarting your loan term with every refinance could keep you in debt longer, costing more in interest over time.

Frequent refinancing can also lower your credit score due to multiple hard inquiries. And if you’re pulling out equity repeatedly, you risk owing more than your home is worth if prices drop.

💡Takeaway 

Refinancing multiple times only makes sense if the savings or benefits clearly outweigh the costs.

When should you refinance your home again?

Refinancing again can be worth it if it saves you money or helps you meet a financial goal. Here are common reasons to refinance, plus examples of when it pays off:

To lower your interest rate and monthly payment

If rates have dropped since your last refinance, refinancing again could reduce your monthly payment and total interest costs. But the savings should outweigh closing costs.

Example: On a $300,000 loan at 7%, your monthly payment is $1,996. Refinancing to 6.25% lowers it to $1,847—a $149 monthly savings. 

Over five years, that’s $8,940 saved, which could more than pay for your refinancing costs.

To shorten your loan term

Switching from a 30-year loan to a 15-year loan can help you pay off your home faster and save on interest if you can handle a higher monthly payment.

Example: On a $250,000 loan at 6%, you’d pay $289,595 in interest over 30 years. Refinancing to a 15-year loan at 5.5% drops total interest to $117,932—a $171,663 savings. Plus, you’ll be mortgage-free 15 years sooner.

To switch from an ARM to a fixed rate

If you’re on an adjustable-rate mortgage (ARM), refinancing to a fixed rate can protect you from future payment spikes.

Example: On a 5/1 ARM at 5%, your $250,000 loan starts with a $1,342 payment. But if rates rise to 7% after the fixed period, your payment jumps to $1,663. 

Refinancing to a fixed 5.5% locks in a $1,419 payment. This gives you some stability and protects you from future increases.

To remove private mortgage insurance (PMI)

If your home value has increased, you may have enough equity (at least 20%) to ditch PMI through a refinance.

PMI on conventional loans can be removed without refinancing:

• You can request removal once you reach 20% equity.
• Lenders are required to remove it automatically at 22% equity.

However, FHA loans work differently. FHA mortgage insurance premiums (MIP) last for the life of the loan, and the only way to eliminate them is to refinance into a conventional loan.

Example: If you’re paying $200 monthly in PMI on a $275,000 FHA loan, refinancing into a conventional loan with the same rate could save you $2,400 annually.

To access your home equity (cash-out refinance)

A cash-out refinance lets you borrow against your home equity. But because it increases your loan balance, it’s best for large expenses like home improvements or debt consolidation—not luxury splurges. 

Example: Your home is worth $400,000, and you owe $250,000. Refinancing to a $300,000 loan at 6.5% gives you $50,000 in cash. With this rate, your monthly payment increases from $1,580 to $1,896.

If you lock in a lower rate than you currently have, your payment increase may be smaller. Or you could even lower your payment while pulling cash out. But if your new rate is higher, your payment could jump.

Note that cash-out refinances are usually at a higher rate.

To add or remove a co-borrower

If you’re divorcing, refinancing is often the only way to remove your ex from the mortgage. You can also refinance to add a co-borrower, such as a spouse or family member. This could help you qualify for better rates if they have stronger credit.

If my clients are considering refinancing their mortgage multiple times, my recommendation depends on the circumstances. The math is easy if they are lowering their interest rate because you figure out how much interest they save on an annual basis to see when they break even when comparing closing costs.

When you should wait to refinance your mortgage again

Even if you qualify for refinancing, the timing might not be right. Here are situations where waiting could make more sense:

When the closing costs outweigh your savings

Refinancing isn’t free. Closing costs usually range from 2% to 6% of your loan amount. If your monthly savings won’t cover those costs within a few years, refinancing could cost more than it’s worth.

Example: Suppose your refinance costs $7,000 and lowers your payment by $100 a month. It would take you 70 months (nearly six years) to break even. If you plan to sell before then, refinancing isn’t worth it.

A good rule of thumb: Refinancing might not be worth it if you don’t plan to stay in your home beyond your breakeven point.

When your credit score has dropped

Lenders reserve the best rates for borrowers with strong credit. If your score has dropped since your last refinance, you could get stuck with a higher rate or even be denied.

Better move: Wait until your score improves, if possible. Paying down credit card balances or correcting errors on your credit report could help raise your score.

When you’re stretching out your loan term (again)

Restarting a 30-year mortgage every time you refinance can trap you in a debt cycle. Even with a lower rate, you could pay more interest long-term.

Example: If you refinance a 30-year loan after five years into another 30-year loan, you’re committing to 35 years of payments. That’s more interest and a longer road to becoming mortgage-free.

Consider this alternative: Refinance into a shorter loan term, like a 15- or 20-year loan, if you can afford it. Your payment might be higher, but you’ll pay off your home faster and save on interest.

When interest rates haven’t dropped enough

A small rate drop doesn’t always justify the cost of refinancing. Lenders often say a 1% drop is the benchmark, but it depends on your loan size and how long you’ll stay.

Example: A 0.5% rate drop on a $100,000 loan might only lower your monthly payment by about $30. This might be barely enough to cover closing costs. But on a $750,000 loan, the same rate drop could save you $250 a month. Depending on your situation, this could make refinancing more worthwhile.

When you’re planning to move soon

If you sell your home within a couple of years, you likely won’t recoup your closing costs unless the monthly savings are huge. Refinancing makes more sense if you plan to stay long enough to break even.

When you’re cashing out without a plan

A cash-out refinance can help you pay off high-interest debt, fund home improvements, or tackle other goals. But it could backfire if you’re not careful. 

Example: Say you use a cash-out refinance to pay off $20,000 in credit card debt but rack up new balances within months. Now, you’ve lost home equity and are deeper in debt.

Alternatives to refinancing your mortgage again

If refinancing your mortgage doesn’t make financial sense right now—whether due to high closing costs, a low credit score, or rising interest rates—there are other ways to achieve your financial goals. Here are top alternatives to consider.

Mortgage recasting

If your main goal is to lower your monthly payment but you don’t want to go through the hassle and cost of refinancing, mortgage recasting could be an option. This involves making a large lump-sum payment toward your principal balance, and in return, your lender recalculates your remaining payments based on the lower balance. 

While this doesn’t change your interest rate or loan term, it can significantly reduce your monthly payment.

Home equity loan or HELOC

Instead of refinancing, homeowners who need cash for home improvements, debt consolidation, or other major expenses might consider a home equity loan or a home equity line of credit (HELOC). A home equity loan provides a lump sum with a fixed interest rate, while a HELOC allows you to borrow as needed, similar to a credit card. 

Both options allow you to tap into your home’s equity without replacing your mortgage.

See our lists of the best home equity loans and best HELOC lenders.

Loan modification

If you’re struggling to afford your mortgage payments but refinancing isn’t an option, you may be able to negotiate a loan modification with your lender. This can involve extending your loan term, reducing your interest rate, or even adjusting your principal balance to make payments more manageable. 

Loan modifications are typically reserved for borrowers experiencing financial hardship.

Extra mortgage payments

If your goal is to pay off your mortgage sooner or reduce the total interest you pay, making extra payments could be a good alternative to refinancing. Even small additional payments toward the principal each month can add up over time and help you save on interest. 

Some lenders allow biweekly payments, which can result in one extra full payment per year and reduce your loan term.

Refinance with a different lender later

If refinancing doesn’t make sense right now, it could still be a viable option in the future. Keeping an eye on interest rates, improving your credit score, or increasing your home equity can put you in a better position to refinance down the line. Shopping around with multiple lenders when the timing is right can help you secure the best terms.

Each of these alternatives offers different benefits depending on your financial situation and long-term goals. If refinancing isn’t the best move right now, consider which option aligns with your needs.

How to choose a refinancing lender

Choosing the right lender can make or break your refinance. Here’s what to think about: 

• Shop around and compare offers carefully. Every lender sets its own rates and fees, so get multiple quotes. Use online marketplaces, check with your current mortgage provider, and look into local banks or credit unions. 
• Check lender requirements. Some lenders enforce stricter seasoning periods before they allow refinancing. Others might require higher credit scores or more home equity (for cash-out refinances). Ask upfront about refinancing requirements to avoid surprises.
• Look beyond the rate—consider service and speed. A smooth refinance process can save time and stress. Look for lenders with easy online applications, quick preapprovals, and strong customer service reviews.
• Ask about rate locks and discounts. Some lenders offer lower rates to current customers or discounts for setting up automatic payments. Others provide free rate locks to protect you from rising rates during the application process. For example, SoFi, our choice for the best digital mortgage experience, offers a 45-day rate lock period.

Tip

Compare the top options on our list of the best mortgage refinance companies to find one that fits your needs.