How Often Can You Refinance Your Home

With the low mortgage rates that are available through some lenders, it makes sense to refinance your home if you want to make savings. But what if you have already refinanced your home once. Are you able to do it again? Will you be penalized for doing so?

These are the questions that many of our clients ask so let's find out how often you can refinance your home, and if it is right for you to do so.

Conventional Loans: How Often Can You Refinance Your Home?

If you're wondering how often you can refinance your home, the answer is as often as you like. There are no limits to how many times you can do so although there are some stipulations.

If you have a conventional loan, there might not be a waiting time to refinance. However, some lenders may enforce a waiting period called a ‘prepayment’ between the moment you close one loan and refinance to another, so you should check with your current lender. The waiting period is what is known as a 'seasoning' requirement, generally this time period is for at least 180 days, but does vary depending on the lender.

MortgageQuote.com is a Miami mortgage broker that can help assess and provide the benefits and features of refinancing your current mortgage.

Government-Insured Mortgages: How Often Can You Refinance Your Home?

If you consider how often you can refinance your home with a government-insured mortgage, the answer could be a little less complicated. You might be able to refinance your home as many times as you like, but you may or may not want to take advantage of the streamline option, or just do a completely new refinance if you want cash out or other scenarios. Streamline mortgage options, a rate and term only, tend to be quicker and with a lot less paperwork is needed. Potential savings as such no need for an appraisal can save you some money on streamline options.

If you're a homeowner with an FHA loan and you are looking to reset your mortgage to lower payments with an FHA streamline refinance, you might have the opportunity to do so. However, it is suggested you should have made at least 6 payments on your original FHA mortgage and had it for a minimum of 210 days before applying for a new mortgage. If you are opting for an FHA cash-out refinance, there is generally a minimum wait time of 180 days.

Should you be a homeowner with a VA loan, and you are considering a VA streamline reference, you might have to wait either 210 days from the date of your first mortgage payment or a date after the sixth payment was made. If you decide on the VA cash-out refinance, the waiting period should be at least 210 days from the close of your first mortgage. Please note, all terms and guidelines are subject to change without notice for any and all mortgage programs.

Despite these timelines, connect with MortgageQuote.com to set up a prudent strategy to refinance your mortgage. There are pros and cons to refinancing, as you can see below.

How Often Can You Refinance Your Home

Pros And Cons Of Refinancing: How Often Can You Refinance Your Home?

When thinking about refinancing, it's not only a question of how often you can refinance your home. It's also a question of should you?

You should consider refinancing your home if…

You can lock in a lower interest rate that makes sense. This might mean smaller monthly payments, thus giving you more financial freedom, and the potential ability to pay off your loan sooner. However, you should also consider the Annual Percentage Rate first and the costs associated with refinancing, as well as timing. You need to make sure there is enough value in it for you first prior to doing so.

There might be a stockpile of equity tied into your home. You might be able to use the cash from the equity you have built for whatever purpose suits you. You could use it to pay off other debts, or buy another home, as examples.

You should think twice about refinancing your home if…

You can't afford the fees associated with refinancing or the payment. It might be better to wait until you're in a better financial position.

The savings are minimal. If your financial position hasn't changed much there might not be a huge difference in the interest rate on a new loan considering the costs associated. And even if you stand to make some savings, you need to ensure you will be financially better off after paying the costs associated.

Should You Refinance Your Home?

Refinancing can be a good idea as it might allow you to reduce your monthly payments. However, it's not always easy as not everyone wants to get a mortgage quote and think they need to have their credit checked, but with MortgageQuote.com we do not need to pull credit for a general inquiry. However, if you choose to get a pre-approval, it is at this stage you will then need to have credit pulled.

In Conclusion, it's not only a question of how often you can refinance your home, but should you? We may be able to help you make the right decision if you do decide to get a mortgage quote. We have access to top lenders and their mortgage loan programs that hopefully will fit your personal situation.

Sources

https://www.fha.com/fha_streamline_refinance

https://www.fha.com/fha_refinance

https://www.bankrate.com/mortgages/how-many-times-can-you-refinance/

https://www.centralbank.net/learning-center/the-pros-and-cons-of-refinancing/