You may. Homestead protection can be illusory. For example, if you have a $300,000 home equity and a $300,000 homestead exemption, your home is now fully protected. But how well will your home be protected in the future? You'll build equity in your home each month through its appreciating value and by reducing its mortgage. If you are sued years from now, you'll have substantially more equity which your homestead exemption won't cover. Homesteading seldom fully protects the family home, so one solution is to periodically refinance your home so that your combined mortgages
and your state homestead exemption together leave no equity exposed to a lawsuit. You also need other means of protection when your creditor is unaffected by homestead.