News for hackers. Stuff that matters.

A comment on The 30-Year Mortgage Is an Intrinsically Toxic Product (2018). Parent comment

Re:The 30-Year Mortgage Is an Intrinsically Toxic Product (2... by yuppie_scum on Saturday July 22, 2023 @04:55AM (#36824594)
In the USA there’s a fee for refinancing as well, but it is usually a fraction of the loan principle and it is often rolled into the loan - so at the end of the day, the net effect is a lower monthly payment for the homeowner and that’s all they really care about.
[ Parent | on HN ]
Re:The 30-Year Mortgage Is an Intrinsically Toxic Product (2... by phicoh on Saturday July 22, 2023 @06:31AM (#36825055)
That is fine. You can't really call it an externality if there is a fine for refinancing at a lower interest rate. All that matters is that the original lender collects a suitable fine when the mortgage is terminated.
[ Parent | on HN ]