Refinancing: Is It Time? Maybe. But Don’t Get Sold.

Refinancing has once again taken center stage in the mortgage world, with more than 60% of all current mortgage applications now driven by refinance activity. On the surface, that sounds like good news: rates are easing, consumers are acting, and opportunity appears to be in the air.

But the real question is not can you refinance.
The real question is: should you?

Because while some refinances are financially sound, others are simply well-marketed transactions designed to solve a lender’s problem—not the borrower’s.

Having spent decades in this business, I’ve seen every version of the mortgage cycle. I’ve watched seasoned professionals navigate both rising and falling markets with discipline. And I’ve also seen a wave of loan officers enter the industry during the sub-4% rate era who genuinely believed that environment was normal, permanent, and guaranteed. Many built lifestyles around volume that was never sustainable. Now that volume has been cut in half, some are desperately trying to recreate 2021 by convincing homeowners to refinance into deals that may not actually benefit them.

That’s not cynicism. That’s market reality.

Consider why your current mortgage servicer might suddenly be calling you with an “exclusive refinance opportunity.” Mortgage servicing rights are essentially an income stream purchased based on the expectation that you’ll keep making payments for years. If rates fall and you refinance with another lender, that income stream disappears. So, servicers often attempt to “recapture” you before you shop the broader market. That motivation isn’t inherently evil—but it is financial, not fiduciary.

And that distinction matters

Let’s walk through a practical example.
A homeowner has a $500,000 loan at 7% on a 30-year fixed mortgage. They’re offered a refinance to 6%. Sounds compelling, right?

But closing costs in many markets run around 2% of the loan amount—roughly $10,000. Often, borrowers are told there are “no out-of-pocket costs” because those fees are rolled into the new loan balance, increasing it to $510,000. That’s not free. That’s financed.

The monthly savings in this scenario might be around $270. Helpful—but when you divide $10,000 in costs by $270 in savings, the break-even period stretches beyond three years.

Now ask the uncomfortable but necessary follow-up:
If rates fall again to 5% next year, do you refinance again and spend another $10,000?

This is where strategy matters. Personally, I advise clients that most refinances should break even in 18 months or less, unless there’s a compelling long-term objective involved.

There are absolutely valid reasons to refinance:
Debt consolidation.
Home improvements.
Cash-flow restructuring.
Long-term stability.

Those can be thoughtful, strategic decisions when structured properly.

What concerns me is when refinancing becomes a product being sold rather than a solution being designed.

Your home is likely the largest financial asset you will ever manage. Treating that decision like an online impulse purchase is risky. You wouldn’t choose a cardiologist based on who had the flashiest ad in your inbox. You’d look for credentials, experience, and trust. The same logic applies here.

This isn’t about finding the lowest advertised rate.

It’s about finding the right advisor.

So take your time. Do the math. Ask hard questions. Review reputations. Understand the long-term implications—not just the monthly payment.

Because refinancing can be a powerful financial tool.

But only when it’s built around your best interest—not someone else’s production quota. So, is it time for you to refinance???