– How does mortgage refinancing work, and why would a bank offer it if it saves the home buyer money?

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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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Anonymous 0 Comments

Banks make most of their money on the closing costs. Most of the time, they don’t end up holding the loan for very long and it gets bought by Frannie Mae or Freddie Mac. Any opportunity to get you to refinance, they want you to do it.

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