How often can I refinance?

There's no limit to how often you can refinance. You can do it as often as you like. You need to remember, however, that the costs can add up quickly. Every refinance is a new loan, which means there are closing costs. If you refinance at a lower interest rate and your monthly payment is lower, then you will, over time, recover your costs.

When you refinance, your lender may give you the option of rolling the closing costs into the new loan. This saves you money up front, but may cost you more in the long run, because now you're paying interest on the closing costs.

A good rule of thumb with refinancing is to wait until you've recovered your closing costs before you refinance again. The only exceptions are if you're able to get a much lower interest rate or you need to do a "cash-out" refinance to cover an unexpected expense.

Use our Am I better off refinancing? calculator.