How Often Can You Refinance Your Home?

94% more mortgage refinance applications were filled this year compared to the last. Since interest rates are going down, refinancing your existing mortgage can help you pay it off early.

You can refinance as many times as you wish there is no limit on it. There are a few requirements you’ll need to meet each time. So, finding a good lender is important. Check out reAlpha who’ll provide a list of verified lenders to help you on this journey.

There is no limit on how many times you refinance a mortgage. However, how many times can you refinance a house in a year has its limitations. It all depends on the type of loan you have for your home. Let us look at that below:

1. FHA loans- An FHA loan, has a waiting period of 210 days from the day the mortgage is closed. Further, you’ll have to wait for 6 months from the first payment date.

2. VA loans- Similar, to FHA loans, VA loans are available after 210 days after you make your first mortgage payment.

3. Conventional loans - Lenders require a 6-month to 2-year waiting period before you begin a refinance house process.

4. Cash-out refinance- You need to hold the property for 6 months before you can proceed to refinancing. Generally, lenders impose a 6-month waiting for these types of loans.

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There are several advantages to refinancing a home. Listed below are some benefits you can get with refinancing.

1. Lower Interest Rates: If the interest rates are low, you can jump in and take advantage of them through refinancing. You can save a lot of money if you can lower the interest rates without changing the terms of the loan.

2. Change Your Loan Term: Changes in your income can happen at a moment’s notice. If your income has increased, you can refinance your mortgage for a shorter period. Furthermore, if your income has decreased, you can refinance to a 30-year term. This will reduce your monthly mortgage payment.

3. Better Credit Score: If your credit score has improved from the first time you can go for a refinance. When you refinance a second mortgage, with a better credit score you’ll qualify for lower interest rates.

4. Remove Private Mortgage Insurance: If you have a good amount of equity in your house, you should eliminate private mortgage insurance. The cost of this insurance ranges up to $70 for a $100,000 borrowed. This will eliminate additional expenses and save you extra costs.

5. Need Some Cash: If you need money to consolidate debt or have some expenses, a cash-out refinance is worthwhile. However, you’ll be required to pay a higher interest rate.

You can refinance your house multiple times; however, there are some disadvantages of refinancing home loan. Consider these factors before you decide to refinance your house.

If you are refinancing your home, you’ll have to pay closing costs again. Closing costs range between 2% to 6% of the total loan amount. You should keep this expense, especially if you are not planning to pay upfront. This will be added to your mortgage, increasing the amount owed.

You can also opt for a no-closing cost refinance avoiding any additional fees. This will result in higher interest rates, increasing your principal mortgage.

You will need to qualify for all the mortgage standards that you cleared at the start. If your credit has changed, the interest rates will go high. Generally, lenders have a 700+ credit score for low interest rates. So, check out your lender’s credit score before you submit the application. 

It is uncommon, but there are some lenders who impose penalties if you repay the loan early. So, check whether a lender has a prepayment penalty, as it can incur additional costs.

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Yes, you can refinance your home loan to get a lower interest and remove private mortgage insurance. However, make sure that you check the existing marketing conditions, and refinance rules to get the best terms.

There are some seasonal requirements and a lower credit score can impact how you refinance your home. In all this, you should not forget to get a good lender that can offer you the best terms. With reAlpha, you can find the best lenders using its advanced technology-backed service.

Lenders have a seasoning period that requires you to wait before refinancing. Refinancing your home generally takes at least six months.‍

Yes, refinancing can offer significant advantages. With it, you can get lower interest rates, reduce your monthly payment, or consolidate debt.‍

There are risks of refinancing if you continue to do it multiple times. Every time you make a refinance, you’ll have to pay closing costs increasing your debt further. Apart from this, you can face prepayment or have to pay a higher interest due to a poor credit score. If you are looking for a reliable lender, then reAlpha will help you find them through their extensive database.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance - all in one place.

Get Pre-approved