Should Your Mortgage Clients Refinance in 2025?

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August 20, 2025 | By RGR Marketing Blog

What to Tell Your Mortgage Clients About Refinancing Right Now

Refinancing has always been one of the most important conversations between mortgage professionals and their clients, and in 2025, the decision to refinance is even more nuanced than ever. With interest rates fluctuating, housing markets stabilizing in some regions and cooling in others, and federal programs evolving, every mortgage lender has clients asking: Is now the right time to refinance?

The truth is, mortgage professionals play a key role in guiding their clients through this difficult decision. Here are some of the major factors to consider, what to tell your clients, and the implications of refinancing in today’s market.

Interest Rates Are Always the Starting Point

The first thing homeowners want to know is whether they can lock in a lower interest rate. Rates in 2025 have been more stable than the rapid increases seen in 2022 and 2023, but they remain higher than the historically low levels that were commonplace during the pandemic.

When counseling clients, it’s important to frame refinancing not just as a rate-shopping exercise, but as part of a larger overall financial strategy. Even a modest drop in rates (such as half a percentage point) can still generate meaningful savings over the life of a loan. However, it is important to remember that not every client will benefit equally. Therefore, the key questions to consider should include:

How much lower is the new rate compared to the homeowner’s current one?
How long does the homeowner plan to stay in the home?
Will the potential savings outweigh their closing costs?

Looking Beyond the Rate: Reasons Clients Refinance

While rate reduction might certainly be the most common motivator, the fact is that homeowners often choose refinance for several other reasons. These can include:

Shortening the Loan Term: Some homeowners use refinancing to move from a 30-year to a 15-year mortgage. This often raises the monthly payment but significantly reduces interest paid over time and accelerates equity growth.
Accessing Home Equity: With home values still relatively strong, cash-out refinances remain attractive for clients looking to consolidate debt, fund renovations, or cover large expenses. However, as an advisor, it’s important to ensure your clients understand the risks of converting their unsecured debt into secured debt against their home.
Switching Loan Types: Clients with adjustable-rate mortgages (ARMs) may prefer to refinance into a fixed-rate product for greater stability. This will especially be the case for those whose ARMs are approaching their reset period in 2025.
Removing PMI: If rising property values have pushed clients above the 20% equity threshold, then refinancing now could help eliminate the private mortgage insurance charge included on their current loans, thus lowering their monthly costs.

Considering Costs and Break-Even Points

Closing costs on a refinance typically range from 2–5% of the loan balance. Helping your clients calculate their “break-even point,” which is the time it will take for their monthly savings to cover these upfront costs, is essential.

For example, if a homeowner’s refinancing saves them $250 per month but their closing costs are $6,000, then their break-even period will be two years. If this homeowner is planning to move within that window, then they won’t benefit financially from refinancing.

Market and Policy Implications Are Always in Play

Mortgage professionals need to keep an eye on market and policy changes because these can change course on a dime and when they do, they can have a significant impact on a homeowner’s ability to achieve their goals. For mortgage officers, it’s essential to stay up to date on:

Federal Reserve decisions: Any shift in monetary policy will send ripples, or even tidal waves, into mortgage rates.
Housing market trends: In markets with cooling prices, clients may have less equity to tap, and this can limit their refinancing options.
Tax considerations: Mortgage interest deductions and local tax policies can influence the overall financial outcome of a refinance.

Being proactive about staying on top of these trends positions you as a trusted advisor rather than just a loan originator.

What to Tell Your Refinance Clients in 2025

When speaking with clients about refinancing this year, the message you deliver should be balanced and individualized. Run the numbers carefully because not every drop in rates justifies a refinance. You’ll also want the homeowner to think long term about their refinancing because the value of refinancing often depends on how long they plan to stay in their homes.

Lastly, take a look at the homeowner’s complete financial goals picture. Encourage them to consider how a refinance can help them achieve whatever their goals are, be it debt management, retirement planning, or a wealth-building strategy.

Refinancing Is Not a One-Size-Fits-All Solution

In 2025, refinancing is neither a blanket recommendation nor a simple “yes” or “no.” For some clients, it can unlock significant savings, build equity faster, or provide access to cash. But for others, the costs and timing may simply outweigh the benefits.

As a mortgage professional, your role is to cut through the noise, run the math, and help clients see the bigger picture. By focusing on rates, costs, personal timelines, and financial goals, you’ll provide the clarity homeowners need to make one of their biggest financial decisions with greater confidence.

Looking to work with higher quality refinancing leads that actually convert? Then consider purchasing mortgage leads from RGR Marketing. At RGR Marketing, we have more than 20 years of experience working with mortgage professionals and providing them with the high-quality mortgage and refinance leads that they need to succeed.

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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What to Tell Your Mortgage Clients About Refinancing Right Now

Interest Rates Are Always the Starting Point

Looking Beyond the Rate: Reasons Clients Refinance

Considering Costs and Break-Even Points

Market and Policy Implications Are Always in Play

What to Tell Your Refinance Clients in 2025

Refinancing Is Not a One-Size-Fits-All Solution

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money today!

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What to Tell Your Mortgage Clients About Refinancing Right Now

Interest Rates Are Always the Starting Point

Looking Beyond the Rate: Reasons Clients Refinance

Considering Costs and Break-Even Points

Market and Policy Implications Are Always in Play

What to Tell Your Refinance Clients in 2025

Refinancing Is Not a One-Size-Fits-All Solution

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