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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Mortgages are mostly sold not kept by the bank. So the bank gets a one time payment when the new mortgage is created and no interest.
So they are happy to make a new mortgage whenever a borrower would like.
A refinanced mortgage at a lower rate usually has an upfront cost to the borrowed and a lower payment because of the lower interest rate. That generally means the borrower saves money after some payback period often around 1 to 2 years.
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