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Can You Refinance Twice?

Sure. And it could save you thousands.

For the first time since April, the mortgage rate averages compiled by Freddie Mac rose back over 3 percent. People who have refinanced previously tend to have two core questions:

  • Am I eligible to refinance again?

  • Is the current market a good time to do so?

The answer to both of those questions is a strong “Yes” for millions of borrowers, despite the recent rate increases: as we’ve covered in this blog previously, even after these slight upticks, the rates are still near historic all-time lows (from 50+ years of federal tracking). Still, mortgage seasoning requirements (see below) will typically make it impossible to refinance within close range of another refinance.

Can you save right now, though? Just-released data from Black Knight, a mortgage analytics firm, found that the number of households that could see their rate drop by 0.75 percent or more was nearly 12 million (11.8 million). Some of these families, 1.4 million, would score massive savings with a refi – at least $500 per month. For the average family, this financial move would allow them to retain $284 per month.

How Many Times Can You Refinance? What is Mortgage “Seasoning”?

When you refinance, you can choose to do it with your current lender, but it’s also a great chance to switch to a preferable one. This process simply pays off your current mortgage with a new loan. Since the new one is issued with today’s rates, you will likely end up with a better deal. An ethical mortgage professional can help run the numbers.

You can refinance numerous times, as many times as you want. However, due to mortgage “seasoning” requirements, you will typically need to wait a period of time with any new mortgage before going through the process again. Generally, you will need 6 to 12 months of seasoning (holding the loan) before another refinance. That period is often two years if you want to strip away private mortgage insurance.

Is Dropping the Rate the Only Reason to Refinance?

No. Other reasons people switch out their mortgage for a new one include the following:

  • Cash-out refinance: Put some of your equity in your bank account.

  • Get out from under the mortgage faster with a 10-year or 15-year refi (particularly incredible rates).

  • Cut your payments each month, keeping money in your pocket.

Beyond Generalizations

You don’t just need generalized advice, though. You need a professional team that can make recommendations for your situation. At BAM, we get to know your goals and finances better than anyone else so we can tailor a loan to you. Take the first step!

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