Nearly Half of All Mortgage Loans Are Refinances – Most Aren't the Kind Borrowers Expect

Written by:

Alejandra Rodriguez

Date:

02 Aug 2026

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The prevailing assumption in mid-2026 is that nobody refinances when mortgage rates sit in the mid-sixes (roughly 6.5 percent). According to Ron Vaimberg, president of Ron Vaimberg International, , that assumption is wrong, and it’s costing homeowners money. His mortgage coaching and training firm has worked with over 300,000 originators since 1997.

Vaimberg points to industry data from mid-July 2026: 43 percent of all mortgage loans being originated right now are refinances. But the type of refinancing matters. These are not homeowners swapping a 6.5 percent rate for a slightly lower one. “A lot of them are not rate term refinances,” Vaimberg says. “A lot of them are cash out.” This means homeowners are tapping equity to eliminate higher-interest obligations elsewhere.

The Cash-Out Refinance Math

A homeowner with credit card debt at 28 percent interest, or a car loan at 10 percent, can pull equity from their home at a mortgage rate in the sixes. They can use the proceeds to pay off those higher-interest balances. The monthly savings from eliminating high-interest debt can exceed whatever the new mortgage payment adds.

Vaimberg says borrowers are refinancing specifically “to consolidate debt and get rid of the 28% credit card debt that they have.” For homeowners who have gained equity through rising home prices, this approach can work mathematically, even if rates never drop.

Why Nobody Mentions It

The barrier is not that homeowners evaluate this option and reject it. It’s that most never hear about it. Many loan officers treat interest rates as the sole metric for refinancing. As a result, they never raise the debt-consolidation option with past clients.

Vaimberg describes this as a self-reinforcing blind spot. When originators believe refinancing only works in a low-rate environment, “they’re not having the conversation that facilitates a refinance.” If nobody raises the topic, borrowers assume it’s off the table.

He frames rate-only thinking as a trap: when an originator’s entire lens for evaluating a refinance is the mortgage rate itself, “you’re actually putting yourself in a corner that’s very hard to get out of.” As a result, both the loan officer and the homeowner stay stuck in the same assumption.

Vaimberg calls this a pattern, a term he uses for the unconscious decision-making frameworks that govern daily behavior. Loan officers who believe nobody is refinancing stop talking about refinancing, which confirms their belief. This closed loop only breaks when someone challenges the premise.

What Homeowners Should Weigh

A cash-out refinance is not automatically a good move. It increases the total amount owed on the home and resets the loan term. If home values decline after equity is pulled, a borrower could end up owing more than the property is worth. Upfront loan fees reduce whatever savings the consolidation creates.

But for homeowners carrying five figures of revolving debt at double-digit rates, the option is worth running the numbers on. The 43 percent figure suggests a meaningful share of borrowers are already doing exactly that. If a loan officer hasn’t raised the possibility, it may be worth asking directly, or finding a loan officer who will.

Vaimberg says this pattern of cash-out refinancing for debt consolidation tends to increase the longer rates stay in a given range. Borrowers eventually accept current conditions as the baseline rather than waiting for a rate drop. “People eventually get to the point that they say, okay, this is where reality is,” he says. “I’m not going to put my life on hold.”

About the Expert: Ron Vaimberg is President of Ron Vaimberg International, a mortgage industry coaching and training organization he has operated since 1997, having coached or trained over 300,000 originators across his career.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.