The Federal Reserve's recent indications suggest that rates will stay low throughout 2026. This gives investors who still have higher-rate debt more chances to save money. Mortgage rates are expected to stay around 6.25% until 2027, and other estimates say they could drop to 6.%–6.0% or lower by mid-2026. This means that the next year will be a good time to refinance, which can help cash flow and long-term portfolio performance.
The Mortgage Bankers Association also predicts that single-family home sales will reach $2.2 trillion in 2026. This will be a moment when more investors will look at leverage, reorganize their debts, and be ready for new purchases. This mix of lower rates and more activity makes 2026 a good year for brokers to look at their clients' refinancing strategy, especially for those who locked in larger coupons earlier in the cycle.
Lower nominal mortgage rates impact the math behind refinancing. When long-term rates go down, refinance windows open for investors who want to:
The possibility of mortgage rates going down in 2026 is supported by recent Fed policies, lower inflation, and slower economic growth. Most forecasts point to a better climate for investor refinancing, although predictions do differ. This makes time and preparedness key for brokers who work with active portfolios.
When rate windows open, brokers who are ready early help their clients save money.
Many investment loans have step-down penalties that affect the economics of refinancing. Looking at these penalties and when they end helps you determine if clients would be better off refinancing right away or waiting out the loan.
The time of the appraisal, the property's performance during different seasons, and your chosen lender's ability all affect final results. When conditions are prime, brokers who keep an eye on maturities, keep their clients' paperwork up to date, and watch market signals can act fast.
When talking to investor clients, use these four diagnostic checks:
Figure out if the new rate will save enough money after closing fees to make the refi worth it. A general rule of thumb is that when rates are about 0.75 to 1.00 percentage points lower, many investors get a positive NPV. However, the size of the loan, the length of the loan, and the desire to pay out all play a role in this.
Find out if the client wishes to (a) cut the payment, (b) take out equity, or (c) adjust the amortization. Each goal leads to a new set of product options, such as a rate-and-term refinance, a cash-out refinance, or a portfolio restructuring.
Start talking about refinancing 6 to 12 months before the due date or projected market movement. The "open period" for agency or large loans frequently starts long before the loan is due. Getting involved early keeps your choices open.
If a client owns more than one property, compare refinancing on each property separately to a consolidated plan (portfolio loan) that may save money on administrative costs and provide them the option to cash out on numerous properties.
RCN Capital offers specialized refinancing products, portfolio solutions, and dedicated broker support to help you take advantage of the finest possibilities as soon as they become available. Visit the RCN Capital Broker Page to learn more about programs, tools, and resources that will help you get your clients ready for the 2026 refinancing cycle.