When’s the Best Time for Clients to Refinance a High Interest Rate?

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September 10, 2025 | By RGR Marketing Blog

Are Your Clients Expecting High Refinance Interest Rates to Fall Soon?

For mortgage lenders and brokers, one of the biggest opportunities in 2025 is in the refinancing market. Over the last few years, many buyers entered homeownership despite having no choice but to deal with historically high interest rates. They wanted to secure a home before prices climbed further out of reach, even if it meant locking into a mortgage with rates hovering near 7% or higher.

Now, with rates showing signs of softening, these homeowners are starting to ask the big question: When’s the best time to refinance? As a professional in the mortgage industry, this is where you can step in as an advisor, guiding your clients on everything from timing and strategy to long-term financial planning.

Why Timing Matters for Refinancing

Refinancing isn’t just about getting a lower rate—it’s about securing real savings over the life of a loan while simultaneously balancing short-term costs. Homeowners who purchased their homes during the peak of rate hikes may stand to save hundreds of dollars each month, but they need reassurance that refinancing makes sense in their unique situation.

From a lender’s perspective, educating clients on timing can help build trust and position your business as a long-term partner, instead of just as a transactional lender. For the best results here, your timing conversations should center on a few key subjects:

Market Trends: If economic indicators suggest rates will drop further, some clients may benefit from waiting. However, if a small dip already allows them to meet their goals, then it may be smarter to act sooner because further rate drops are never a guaranteed thing.
Personal Goals: Is your client looking for immediate monthly relief, planning a future home upgrade, or simply wanting to achieve greater stability at a lower fixed rate?
Break-Even Point: Refinancing comes with costs, so your buyers will need to understand how long it will take before their savings outweigh those expenses.

Signals That It May Be the Right Time

Helping your clients identify positive refinancing triggers is often very instrumental in winning their trust. Here are a few markers a lender can point to that will signal to their client that the time to refinance is now:

When the Rate Drops 1% or More: Even a drop of 1% can be a significant reduction from their original rate, which is why most lenders use this benchmark to help their clients achieve meaningful long-term savings.
When Their Credit Scores Improve: Over the last few years, many first-time buyers entered homeownership with less-than-ideal credit. If they’ve since improved their score and reduced their debt, then they may now qualify for a substantially better deal.
When Their Home Equity Has Grown: With continued home appreciation, some homeowners might be able to refinance into a lower loan-to-value ratio. In doing so, they could wind up having built enough equity to potentially remove the PMI charge from their loan, thus reducing their monthly payments even further.
When the Market Stabilizes: If rates dip and stay relatively steady, then buyers may feel more confident about pulling the trigger on their refinances.

The Risk of Waiting Too Long

One of the hardest parts of refinancing is balancing the hope for future drops with the reality of today’s opportunities. If rates trend downward, many homeowners may hold out too long, essentially waiting for the “perfect” number. As a mortgage professional, it’s important to remind your clients that with refinancing, trying to time the absolute bottom is a gamble.

Instead, framing refinancing as part of an overall strategy helps. For example, refinancing when rates fall enough to make monthly payments manageable—even if they fall further later—still provides immediate savings. And if rates dip again, some clients may refinance a second time, especially if the savings justify the costs.

How Lenders Can Position Themselves To Capture More Refinance Business

The cold hard fact in the real estate business is that mortgage professionals who proactively reach out to past buyers with high-rate mortgages are more likely to capture their refinance business before their competitors.

To best achieve this, you should use CRM tools to help you identify clients with loans that originated at peak rates. These tools can even send those on this list personalized messages when rates fall.

You can also start producing an educational marketing campaign. Create content explaining refinancing triggers, breakeven calculations, and what current rate trends mean. This can help you frame refinancing as part of strategic long-term wealth building, not just as a transactional move.

By guiding your clients through the decision-making process rather than pushing them toward an immediate refinance, you’ll stand out as a trusted partner and be in the ideal position to help them refinance when everything is aligned.

Purchasing Refinance Leads is Another Great Place to Start

For homeowners who bought during the peak of high interest rates, refinancing represents not just an opportunity but a financial reset. While the “perfect” time to refinance will differ for each client, your role as the mortgage professional is to help them recognize when the numbers make sense and take confident action.

While using CRM tools to scan your past clients is certainly one way to start building your refinance sales funnel, it is not the only way. In fact, purchasing refinance leads may even be preferred over that method. The reason why is because when you purchase refinance leads from a company like RGR Marketing, you are getting exclusive access to prospects who have recently shown increased interest in refinancing. These prospects have already done their homework and many are just waiting to connect with the right lender that can help them start the process. Let that lender be you.

RGR Marketing has more than 20 years of experience working with mortgage professionals and providing them with the high-quality leads that they need to achieve steady growth despite the market conditions. Partner with RGR Marketing today and start converting more leads into satisfied homeowners.

In a fluctuating real estate market like 2025, working with homeowners who have already shown interest in refinancing can help you reduce your cost per lead and improve your closing ratio. Put your trust in a company that understands your industry. Partner with RGR Marketing today, and 2025 may just prove to be a benchmark year yet.

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Are Your Clients Expecting High Refinance Interest Rates to Fall Soon?

Why Timing Matters for Refinancing

Signals That It May Be the Right Time

The Risk of Waiting Too Long

How Lenders Can Position Themselves To Capture More Refinance Business

Purchasing Refinance Leads is Another Great Place to Start

Start making more
money today!

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Are Your Clients Expecting High Refinance Interest Rates to Fall Soon?

Why Timing Matters for Refinancing

Signals That It May Be the Right Time

The Risk of Waiting Too Long

How Lenders Can Position Themselves To Capture More Refinance Business

Purchasing Refinance Leads is Another Great Place to Start

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