Why would a bank offer refinancing at a lower interest? Is any money saved at all, or is it just paid on a different timeline?
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Basically you take out a loan to pay back another loan. If you borrowed at 5% and rates are now 3% you borrow money at 3% and pay off your 5% loan so now you have debt at a lower rate. Banks offer it because there are processing fees that they get when you take out the new loan, and now they have the lump sum of money to do other things with, like make corporate loans at much higher rates.
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