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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I bought my house in 2019 at a 4.5% interest rate. Rates dropped in 2020 and I got ads from other companies offering lower rates. I contacted my bank and asked them if they would consider refinancing to match the lowest offer of 3.25%. They could either say yes and take in less interest income over the life of the loan, or say no and take in zero additional interest income since I could get a better rate from a different company.
They refinanced my mortgage.
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