4 ms·
But can't people refinance? Is the bank offering lower % interest that is subsidized by people who don't refinance?
by mucle6 4y ago
But can't people refinance? Is the bank offering lower % interest that is subsidized by people who don't refinance?
- bombcar 4y agoThe mortgage rate is basically set by whoever is buying the bonds they are packaged as. So it floats a certain points higher than treasuries, usually.
- dragontamer 4y agoI have a 2.3% mortgage. Do you think I'm going to refinance today? No. The bank is stuck with 2.3% from me for the next 15 years. Its a bad deal for them, and a great deal for me. As long as interest rates go up, there's no refinancing to occur. Its financially the wrong move for the property owners.
- bombcar 4y agoIt's not even a bad deal for the bank, they sold your mortgage to a bond long ago and collect some fees.
- sarchertech 4y agoFees mean that the bank will still making money if you refinance in the very short term. Inflation isn’t likely to stay 8% for long.