Alot of people use their homes equity to consolidate bills or access needed cash for a variety of reasons. The national average time between refinances is five years but in some instances events my spring up in your life that require you to refinance sooner. In times like this people can get stressed out and wonder how many times can i refinance my mortgage.
How Many Times Can I refinance My Mortgage
The facts are that you can literally refinance your mortgage as many times as you would like. Although it is possible to frequently refinance you home loan the reality is that there are a few things that could actually stop you from securing financing.
Lender Denial- Lenders may view a borrower who is very frequently refinancing as a potential fraud threat and deny the loan based on received risk factors. This is especially true with borrowers who are pulling cash out on a frequent basis.
Out Of Equity- If you refinance your mortgage to many times you may wind up using all the equity in your home making refinancing impossible. With falling real estate values across much of the country this is now a very realistic possibility for many people.
Cannot Afford Higher Payments- If you keep refinancing you will also keep increasing your loan amount as well. As the loan amounts rise there could be a point where your debt to income ratios are to high for most lenders guidelines. Once you debt to income ratios get to high refinancing will not be an option for you anymore.
Although you cannot control lifes mishaps you can plan effectively for future expenses like college or home repairs and with a little pre planning constantly refinancing your mortgage can be easily avoided.