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In the USA there’s a fee for refinancing as well, but it is usually a fraction of the loan principle and it is often rolled into the loan - so at the end of the
by yuppie_scum 3y ago
In the USA there’s a fee for refinancing as well, but it is usually a fraction of the loan principle and it is often rolled into the loan - so at the end of the day, the net effect is a lower monthly payment for the homeowner and that’s all they really care about.
- phicoh 3y agoThat is fine. You can't really call it an externality if there is a fine for refinancing at a lower interest rate. All that matters is that the original lender collects a suitable fine when the mortgage is terminated.