How often can you refinance your home? This is a popular question that I often receive from homeowners. Let’s explore the conditions when you could refinance and when you wouldn’t want to do so.

Why Would I Refinance My Home?
Refinancing your home allows you to borrow more money or alter your contract’s conditions. Typically, people refinance their home to move to a stronger place financially. Others may choose to do so in order to lower their monthly payment, reduce a mortgage interest rate, or extend their term. Refinancing your home can also use its equity to:

  • Integrate consumer debt
  • Help a child with a down payment for their home
  • Finance home renovations
  • Buy a vacation property

Refinancing Your Home
There are no rules determining how often a person can refinance their home, so they would be free to do so as many times as they’d like. Most lenders follow a guide to how often they’ll offer this type of solution, but this varies between institutions. External environmental factors, like COVID-19, can also affect a refinancing decision.

When Is Refinancing Not a Good Idea?
Refinancing your home can help you to get into a better place financially, or give you more borrowing allowance to take on a new opportunity. However, refinancing your home too often can accumulate your switching costs, making you spend more than you would save. 

It can also reflect poorly on your credit history if you routinely use these programs, making you an undesirable loan recipient to lending institutions. When it comes to refinancing, the better question to ask is, “Does this make sense for me financially?”

Ensuring you have an experienced mortgage broker to help you consider your options and provide you with trusted advice is the best starting point. As a mortgage broker, I want your mortgage experience to be positive and successful, now and in the future. If you're wanting to refinance your home, give me a call at (306) 220-0425, or visit my website and see how I can help you.