There's no free lunch in a refinance. A "free" refi always gets paid for somewhere. Usually one of three ways: - The lender builds a credit into a higher interest rate to cover the costs. - The costs get rolled into your new loan balance. - You accept a higher rate than you could otherwise get. The money just moves to a spot you might not be looking at. Be especially wary of a loan officer promising that everyone gets a free refinance the moment rates dip. A loan officer doing a normal volume of business has neither the capacity nor the profit motive to redo dozens of loans for free every time the market moves, so that promise usually falls apart in practice. What they're describing is a no-cost refinance structure, a real and sometimes sensible option, marketed misleadingly as "free." When someone offers you a future refi, ask exactly how it gets paid for and get the answer in writing. A legitimate no-cost structure holds up to that question.