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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Mortgage refinancing is renegotiating your mortgage, either with lower interest rates, or extending the amortization period (e.g. plan to pay off in 30 years instead of 25).
Banks offer it because they make more in the long term. People do it because it reduces their monthly payment now, even if it means they pay more over the long term.
There’s typically also a penalty for renegotiating your mortgage, but that ends up rolled into the mortgage for most people.
*Edit*: also, it’s generally better for a bank to have mortgages that the customers can actually pay.
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