Many homeowners think refinancing is a “one-and-done” decision, but the truth is you can refinance your mortgage as often as it makes financial sense. While there’s no lifetime cap on refinances, lenders and loan programs generally have waiting periods you need to be aware of. When it comes to refinancing, the real question is whether it helps you reach your financial goals.
Waiting Periods: After Purchase vs. After Refinancing
After Buying a Home
Most lenders require you to wait at least 6 months after closing before you can refinance into a new mortgage. This is sometimes referred to as a “seasoning period.”
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- For Conventional loans backed by Fannie Mae or Freddie Mac, the minimum wait is usually 6 months.
- For FHA loans, you must have made at least six payments, and 210 days (closer to 7 months) must have passed since your closing date before you can use an FHA Streamline Refinance.
- VA loans generally follow a similar 210-day rule, requiring six payments before you can refinance with a VA streamline (IRRRL).
After a Refinance
If you’ve already refinanced once, the waiting rules apply again before you can refinance a second time:
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- For a rate-and-term refinance (just changing your interest rate or loan length): Some lenders will allow another refinance almost immediately, but many still prefer you to wait six months.
- For cash-out refinance (pulling equity from your home): Fannie Mae and Freddie Mac typically require you to wait at least 6 months from your last closing before you can do another cash-out. FHA requires at least 12 months of ownership before cash-out is allowed.
The magic number to remember when determining whether enough time has passed is six. Six months or six payments generally is the rule of thumb when it comes to the amount of time required as a waiting period.
Why Refinance More Frequently?
- Lowering Your Monthly Payment
If rates drop, refinancing can reduce your monthly mortgage payment, freeing up cash flow for savings, debt repayment, or everyday expenses. - Tapping Into Home Equity
Rising home values mean more equity. Homes have been rising in value at incredible rates over the last few years. A cash-out refinance allows you to use that equity for home improvements, tuition, or to consolidate high-interest debt. - Switching Loan Terms
Homeowners may refinance into a shorter term (like 15 years) to build equity faster, or into a longer term to lower payments if cash is tight. - Debt Consolidation
With credit card balances at record highs and savings rates at historic lows, many families are using refinancing to roll high-interest credit card debt into a lower-rate mortgage. We break down the math for you to see just how much you could save by refinancing here.
The Debt and Savings Crisis
Recent reports indicate that Americans are carrying record levels of credit card debt, often at interest rates exceeding 20%, while personal savings rates are among the lowest in decades. Rising costs of living, stagnant wage growth, and the lingering effects of inflation have left many households struggling to make ends meet.
For families juggling multiple credit card balances, the monthly interest alone can be crushing. Unlike mortgage interest, which is typically tax-deductible and significantly lower, credit card interest compounds quickly and can trap households in a cycle of debt.
Refinancing Even When Rates Are Higher
Some homeowners hesitate to refinance when mortgage rates are higher than what is on their current loan. But here’s the key: refinancing isn’t always about chasing the lowest mortgage rate. It’s about reducing overall financial stress.
For example:
- If you’re paying 22% on $20,000 in credit card debt, rolling that into your mortgage, even if your new loan is at 7%, still saves you hundreds each month.
In this example, interest alone, on that credit card, costs about $366 per month (and that’s before making any progress on the balance if you only cover interest).
Rolling the same $20,000 into your mortgage at a 7% APR (30-year fixed) adds about $133 per month to your payment.
That’s roughly $234 less per month in cost compared to keeping the debt on a credit card. Over a year, that’s close to $2,800 in savings just on interest alone. Plus, with the mortgage, you’d be paying down the balance in a structured way, unlike with the treadmill effect of credit cards.
- A refinance can consolidate multiple payments into one predictable monthly mortgage payment, helping you get control over your finances and make progress toward paying off your debt.
Is It Right for You?
Refinancing should always be a numbers-based decision. Consider:
- Your current mortgage rate vs. the new rate
- How long you plan to stay in your home
- Closing costs and how long it takes to “break even”
- Other debts you’re carrying
If the savings outweigh the costs, or if the refinance helps you eliminate crippling credit card debt, it may be worth doing even if you’ve refinanced recently.
The best thing to do if you’re unsure where you stand when it comes to whether a refinance makes good financial sense for you is to reach out and ask. Our loan officers are here to do the math and help you decide if a refinance is right for you. They will break down your current situation and tell you exactly what you would save each month.
You can refinance multiple times throughout homeownership. Just remember, lenders typically require six months from the date of purchase or your last refinance (and sometimes longer for cash-out options). Beyond that, if the math works in your favor, refinancing could be the smartest financial move you make.