Mortgage Blog

Common Myths About Mortgage Refinancing Explained

July 29, 2026 | Posted by: Jack Shotbolt

It is incredibly frustrating to constantly hear mixed signals about money. One day the news says interest rates are dropping, the next day your neighbor swears it is a terrible time to change your loan, and your social media feed is full of conflicting advice. It makes you want to just tune it all out. However, according to the Fortune business insights, the market is projected to grow from USD 24.49 billion in 2026 to USD 46.17 billion by 2034, exhibiting a CAGR of 8.2% during the forecast period.

Missing out on extra monthly cash because of bad information is a terrible feeling. We want to cut through that noise for you. Let us look at what is actually true so you can make the right call for your family.

Myth 1: You cannot get a self-employed refinance mortgage

Many business owners and freelancers believe that without a standard W-2 tax form, changing their home loan is out of the question. That is completely untrue. While traditional banks might make you jump through endless hoops, we specialize in helping business owners secure a self-employed refinance mortgage by using alternative documentation, like your actual bank statements, to verify your income.

If you work for yourself, you can absolutely use a self-employed refinance mortgage to lower your monthly payments or tap into your home equity. We look at the real health of your business rather than just a single line on a tax return. Securing a self-employed refinance mortgage is straightforward when you partner with an independent broker who knows how to present your financial strength to the right lenders.

Myth 2: Refinancing is only smart if interest rates drop drastically

Sitting around waiting for market interest rates to hit rock bottom before you take action means you miss out on real ways to save money right now. Dropping your rate is only a small part of the story.

Think about your monthly bills. If you are juggling high-interest credit cards, a car note, or personal loans, you can use a mortgage for debt consolidation to wipe those out completely. By rolling those expensive debts into your home loan, you trade high interest rates for much lower ones. Plus, you get to skip the headache of tracking multiple due dates and switch to one steady payment.

Here is what your monthly cash flow actually looks like when you use a mortgage for debt consolidation:

Using a mortgage for debt consolidation helps you take control of your finances and free up extra money every single month, regardless of where standard market interest rates sit.

Myth 3: The paperwork takes too much time and effort

If you tried to get a home loan through a big bank years ago, you probably remember piles of paperwork and weeks of waiting. The industry has changed. We use streamlined, online tools to handle your documents safely and quickly.

Our goal is to make the process completely stress-free for you. We shop a massive network of lenders to find you the best terms, manage the details on our end, and keep you updated every step of the way. You can even secure your self-employed refinance mortgage without stepping foot in an office.

Related Article:

Get Personalized Mortgage Refinance Rates Today

Signs You Should Consider Refinancing Your Home Loan

Fast Mortgage Refinance Approval Process Explained

Frequently Asked Questions

How long do I need to wait to refinance my current home loan? 

In most cases, you can replace your loan just six months after closing on your initial home purchase. If you want to use a mortgage for debt consolidation to clear out credit card debt, we can look at your home equity to see how quickly we can get that started for you.

What documents do I need for a self-employed refinance mortgage? 

Instead of traditional paystubs, we can often look at 12 to 24 months of personal or business bank statements. This lets us verify your steady cash flow without hurting your bottom line with heavy tax write-offs.

Will refinancing hurt my credit score? 

A lender will check your credit, which causes a temporary small dip in your score. However, if you are using the new loan to pay off high-interest debts, reducing your overall debt balances will actually help boost your credit score over time.

Ready to see how much you could save? Visit Shotbolt Mortgage to check your options, or reach out to us directly to plan your next step.

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