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Dane here. A piece is missing. Interest rates may be 0%, but there is also an annual bank fee on the loans. As the interest rates have gone down, these fees hav
by fifticon 6y ago
Dane here. A piece is missing. Interest rates may be 0%, but there is also an annual bank fee on the loans. As the interest rates have gone down, these fees have risen, and I believe the banks increasingly make their money on those. It's still good news for borrower, since the fees don't accrue interest.
- saberdancer 6y agoYou probably have a term "Effective interest rate" which takes into account various fees and interest rate. It was designed to counter this type of practices by banks where they would offer lower interest rate but higher fees which were less visible to the consumer.
- KSteffensen 6y agoThe interest rate is locked for the duration of the loan. The fees can vary according to how much money the bank feels like making this year. Since there are quite large expenses associated with refinancing the mortgage most people put up with this.
- tsjq 6y agoThat sounds like "Shariah compliance"