Many self-employed borrowers have low-rate first trust deed mortgages from previous years but may have added second trust deeds or HELOCs. With a changing business environment, a need for liquidity, and evolving family and business needs, navigating the home refinancing decision-making and loan process in 2026 is becoming increasingly complex, especially for self-employed borrowers and business owners with various tax deductions and real estate investments.

Often, there is not a significant interest rate of savings in many of today’s 1st Mortgage refinancing requests. Yet Self-employed borrowers are frequently considering other factors like the opportunity cost of a refinance and cash flow. For instance, if a borrower can access $500K cash out of a property to buy out a partner, make property improvements, or restructure debt, they might even opt for a 6.5% interest-only loan, keeping payments at their current loan payment levels or even lower.

Recent geopolitical tensions in the Middle East and the resulting increase in energy prices have contributed to higher Treasury yields and borrowing costs over the past several months. This shift in rates, coupled with broader market uncertainty, has tempered acquisition activity, causing some investors to be cautious. However, signs of potential diplomatic progress and expectations for energy market stabilization have led many market participants to remain optimistic about improving transaction volumes and financing conditions as summer progresses into the second half of the year.

Mortgage rates are currently at their lowest levels in 10 months, moving up and down, and mortgage refinance applications are increasing. While inflation is dropping, uncertainty remains regarding geopolitical issues and future inflation.

Does this indicate that it is a good time to refinance real estate loans?

Yes, for many. Research suggests that interest rates will likely remain within their current trading range, particularly for self-employed borrowers. Current Jumbo Loan rates on purchases or refinances generally range from 5.85% to 6.5%, with interest-only loan structure requests and shorter-term loans being common.

We’ve seen tremendous success with real estate investors, business owners, builders, and developers, who need more liquidity and seek Cash Out Financing. Our Loan team is ready. Please call if we can help. 866-310-1112 or email danc@dansrealestateloans.com

-Dan Cassel is a licensed and seasoned mortgage loan professional specializing in assisting self-employed borrowers throughout California and the western United States. Trinity Mortgage is a long-time family-owned licensed California mortgage brokerage based in San Diego.

-Dan and his skilled Loan team leverage a proprietary lending platform technology and an extensive lending network to efficiently search for and fund Refinance and Purchase loan requests.