• kkj@lemmy.dbzer0.com
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    2 days ago

    Their whole business model was based around getting people to refinance. When rates are up, people don’t refinance.

    US mortgages are almost always fixed-rate, so increased interest rates don’t change the premiums for existing mortgages, hence the drive to refinance when rates are low.

    • ChickenLadyLovesLife@lemmy.world
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      2 days ago

      US mortgages are almost always fixed-rate

      A lot of them are variable-rate which is just insane. You’re allowing your mortgage lender to charge you whatever interest rate they feel like charging, with your only out being the hassle of refinancing.

        • taco@anarchist.nexus
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          16 hours ago

          It used to be more common, but I think it got a lot less so after the 2008 economy did its thing. At least that’s my anecdotal impression.