Well you can really refinance as often as you would like to but there are certain things you should really look at before you refinance your home. First of all, you want to make sure that refinancing will benefit you. You should see whether: -Interest rates have dropped significantly in recent months. You may be able to reduce your monthly payments significantly by refinancing. -Property values have increased significantly in recent years. You may be able to eliminate mortgage insurance and escrow payments, or obtain additional cash by refinancing. If you would benefit from that than here is when you should actually consider doing some refinancing: -If your financial situation has changed significantly, you may be able to match the terms of your mortgage financing more closely with your new financial situation -Rates have/are threatening to increase] -If your flexibility for risk has changed. Maybe if you refinance you can increase your flexibility or lower your risk. -Most experts would suggest speaking with a mortgage consultant before you refinance. They can help you decide what is best for you. LOOK OUT! Some lenders actually create pre-payment penalty clauses into the mortgage contract. A lot of states have made these pre-payment clauses illegal but some lenders still do it. Essentially, what a pre-payment penalty says is that if you refinance before the time limit on the penalty expires than you will need to pay a certain percentage on what you pay off. Sounds unfair, huh? Yeah, I thought so too.