Mass Transit Wisdom

When I am not reading on the train, I often pass the time by eavesdropping.

Today I overheard some folks talking about refinancing. I will try to capture the flavor of the conversation:

Party A: "You know they lowered interest rates again."
Party B: "Maybe I should refinance. My wife will kill me though, all that paperwork again."
A: "I can't refinance, when we did it last year part of the contract was that we couldn't refinance for three years blah blah blah saved an 1/8th of a point on the rate blah blah."

[A and B discuss the legality of such an agreement, while I ponder the wisdom of signing such a contract.]

B: "Anyway, maybe I'll call (insert popular refinance company here)."
A: "Oh, no, don't use them, they're really bad and stuff."

Hmm. Should you take refinancing advice from a guy who willingly locked himself out of the refi market for three years for a measly 1/8th of a point? Such a strategy seems fraught with peril.