Mortgage rates are expected to decline in 2026, prompting a surge in refinancing applications. To prepare, review and correct your credit reports, calculate your refinance break-even point, and ensure you have at least 20% home equity to avoid PMI. Pay down consumer debt to improve your debt-to-income ratio, shop multiple lenders for the best rates, scrutinize no-cost refinance offers, and organize financial documents for quick application. Act promptly when rates reach your target.