You can tell the refinance market for mortgages has gotten soft, now the mortgage companies are calling you out of the blue. It used to be you would request to refinance a loan, and they were too busy for you.

This came to mind last week when I got a call on my cell phone. I don't give the number out to anyone, so I thought this might be important. I didn't know the number, but I answered anyway. (Highly one-way conversation follows.)

...

A hello, and she started to ask how I was and if I was enjoying the weather. That type of start to a phone call is never a good sign. Did I apply online to refinance my mortgage? Why yes I did, but that was over a year ago when rates were much, much better. You can refinance my loan? Well thats swell, but with rates having gone up, I don't think you can beat the rate I have now.

OK, I pointed out why this wouldn't work up front, now time for me to get the sales pitch. Am I looking to take money out when I refinance? No, not really, I just was looking for a lower rate. No, I wasn't looking to lower my monthly payment either, I can handle the payment I have. (she went back and forth between these two options for a few minutes until she realized I wasn't kidding – or just gave up.) How long have I had the loan? Eight years. How much is left? Perhaps five more. You can refinance my remaining loan balance for 15 years at the rate I have now? Why would I want that? It will lower my monthly payment? Yes, I understand that, but if I do that I will be spending more money over a longer time (not to mention I will probably have to pay a fee to refinance as well). I only wanted to spend less money, not more. Really, if you can't give me a better rate (at least 1%) I'm not interested.

...

Trust me, this is much shorter than the real conversation went. She kept telling me it would save me money and I would pay less. I guess that might be so if I could take the difference in payments and invest them at a higher rate. But do you know of anything that makes, oh say, a guaranteed 10%? (My loan isn't 9%, but if I would do this, I want to make it worth my while). Nope, I don't either. Does having someone tell you that you can pay less now, but pay more over the long haul entice you to refinance?

Don't take this as frustration, I kinda enjoyed the conversation and laughed about it later with a friend.