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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Banks facilitate the buying and selling of mortgages. They make money from fees. Although a bank could be the counterpart, i.e. the buyer of the mortgage, they more often aren’t.
When you loan a million dollars, someone else invested that million dollars into that mortgage, expecting to get the million dollars back plus the interests.
Every time you finance and refinance, the bank makes money from the fees associated with doing it regardless of who is the counterpart in the mortgage.
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