How it generally works
In exchange for a slightly higher rate, a lender credit can offset some or all of the closing costs. Whether that is worth it depends on your current loan, expected time in the home, and current market conditions.
When it may make sense
Typically when rates have moved meaningfully in your favor, or when your credit or equity picture has improved. I run a real analysis first and only recommend it when the math clearly supports it.
How I stay involved
Through Mortgage Under Management, I keep an eye on the market for your specific situation. If a refinance becomes worth reviewing, I reach out. If it does not, I do not.