Church Finance 2026 Outlook: Key Lessons from John Berardino of Griffin Church Loans
Church finance 2026 will reward preparation more than prediction.
Drawing from over 26 years of experience and more than 2,000 church loans, John Berardino of Griffin Church Loans explains why understanding affordability, timing refinancing wisely, and preparing financial records early can position churches to take advantage of lower rates and avoid costly construction mistakes.
When Should a Church Refinance in 2026?
As part of our December church finance series, Griffin Church Loans President John Berardino explains how churches should think about refinancing decisions heading into 2026—with a focus on timing, affordability, and long-term stewardship.
👉 Watch the full interview below.
John Berardino shares a short perspective on leadership health, long-term stability, and rebuilding with clarity as churches prepare for 2026.
As churches look ahead to 2026, many pastors and treasurers are asking the same questions: Will interest rates finally come down? Should we refinance? Is this the right time to expand, build, or wait?
After a financially challenging 2025, clarity matters more than optimism.
In a recent in-depth interview, John Berardino, President of Griffin Church Loans, shared practical, experience-driven insights drawn from 26 years of church lending, more than 2,000 closed church loans, and over $2 billion funded nationwide. His message is steady, realistic, and encouraging: churches that prepare now will be best positioned to act wisely in 2026.
For over 26 years, Griffin Church Loans has specialized exclusively in helping churches navigate refinancing, construction, expansion, and property acquisition with clarity and care.
This article distills the most important lessons from that conversation — translated into clear guidance for church leaders.
The 2026 Church Finance Readiness Framework — Griffin Church Loans
What 2025 Taught Churches Financially
For many churches, 2025 was defined by one word: pressure.
Higher interest rates limited how much churches could borrow, delayed construction plans, and forced leaders to reconsider refinancing decisions. Projects that looked feasible just a few years ago suddenly felt out of reach.
Yet John points out an important truth: interest rate environments change. What churches experienced in 2025 was not permanent — it was part of a broader financial cycle.
Understanding that cycle, rather than reacting emotionally to it, is the foundation of smart church financial planning.
Interest rates move in cycles, a pattern shaped by broader monetary policy and economic conditions outlined by the Federal Reserve.
“You’re Renting Money, Not Borrowing It for Life”
One of the most important mindset shifts John shared is how churches should think about loans.
A church loan is not a lifetime sentence. It is temporary access to capital.
When a church takes out a loan, it is essentially renting money for a period of time. If interest rates decline during the loan term, the church can refinance and reduce its payments and total interest cost.
This perspective removes fear from borrowing and replaces it with strategy. Churches that understand this are far less likely to panic during high-rate periods — and far more likely to make sound long-term decisions.
When Should a Church Refinance — and When Shouldn’t It?
John’s guidance here is refreshingly clear:
- If your current interest rate is lower than today’s rates, do not refinance just because rates feel uncomfortable.
- If your loan is coming due and refinancing is unavoidable, refinance — and be prepared to refinance again when rates improve.
Churches considering refinancing a church loan should focus on long-term affordability rather than reacting emotionally to short-term rate changes.
Many churches make the mistake of reacting emotionally to headlines rather than evaluating their actual loan terms. The smartest approach is rule-based, not fear-based.
Looking toward 2026, interest rates are expected to continue trending downward. Churches that stay organized will be ready to take advantage of that shift.
When Should a Church Refinance? — 2026 Decision Guide by Griffin Church Loans
The #1 Construction Mistake Churches Make
Over decades of lending, one issue has surfaced repeatedly.
Churches often start with architects and builders before understanding what they can afford.
John has seen churches bring forward beautifully designed projects — sometimes costing millions — only to discover that their income cannot support the loan payments. By that point, significant money has already been spent on plans, studies, and fees.
The correct order is simple but critical:
- Understand your current financial position
- Determine how much your church can realistically afford to borrow
- Then engage architects and builders
This single change in sequence can save churches years of frustration and unnecessary expense.
This is why experienced lenders recommend evaluating church construction financing early—before architects, builders, or feasibility studies are commissioned.
Why Church Loans Are Different from Commercial Loans
While church loans fall under the broader category of commercial lending, they are fundamentally different in purpose and structure.
A for-profit business exists to generate profit. A church exists to serve people, steward ministry, and advance its mission.
Because of this difference, experienced church lenders evaluate loans differently — looking not just at numbers, but at stability, leadership, and stewardship.
One important distinction John highlights is personal guarantees. Many traditional lenders require pastors or board members to personally guarantee church loans. At Griffin Church Loans, most church loans are structured without personal guarantees, protecting individual leaders from personal financial risk.
This specialization is why churches benefit from working with lenders who focus exclusively on church financing.
Because churches are nonprofit organizations, sound borrowing decisions must align with principles of nonprofit financial stewardship rather than profit maximization.
How Churches Should Prepare for 2026
In the context of church finance 2026, readiness means having clear records, realistic borrowing expectations, and the discipline to act thoughtfully rather than react emotionally.
Preparation, not prediction, is the real advantage.
According to John, churches should focus on a few practical steps now:
- Organize and update financial statements
- Understand current loan terms and maturity dates
- Review affordability and cash flow realistically
- Be ready to act when interest rates improve
Churches that are prepared can move confidently. Those that are not often miss opportunities — or make rushed decisions under pressure.
Tools like Griffin’s church mortgage calculator can help leaders understand realistic borrowing capacity before making long-term commitments.
A Final Message for Pastors and Treasurers
If there is one takeaway from John Berardino’s message, it is this:
Good financial decisions begin with preparation.
Churches do not need perfect timing — they need clarity, organization, and trusted guidance. With those in place, 2026 can become a year of opportunity rather than uncertainty.
Frequently Asked Questions (FAQ)
Should churches refinance in 2026?
If interest rates decline as expected, refinancing may reduce monthly payments and long-term interest costs. Each situation should be evaluated individually.
What is the biggest mistake churches make before construction?
Starting design and planning before knowing how much the church can afford to borrow.
Do church loans require personal guarantees?
Some lenders require them, but many church loans through specialized lenders do not.
How can a church prepare for lower interest rates?
By organizing financial records, understanding loan terms, and staying informed.
Next Steps
For over 26 years, Griffin Church Loans has helped churches navigate refinancing, construction, expansion, and property acquisition — with honesty, fairness, and speed.
Many of these financial themes build on long-term patterns Griffin has observed across decades of church lending, explored further in Lessons From 2,000 Church Loans – Insights From Griffin’s 26-Year History.
Churches preparing for 2026 are encouraged to contact Griffin Church Loans to review their financial readiness and explore responsible next steps.