Comment by dh2022

Comment by dh2022 2 days ago

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Why you could not refinance when the rates went to 0%? In the US a lot of people did that in 2009/2010 and then again during COVID

sokka_h2otribe 2 days ago

Refinancing and loans work differently outside of the U.S. what I don't remember is exactly how. If I recall, you can't refinance without paying

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marcyb5st 2 days ago

Well, you can go to another bank so that they can cover your mortgage and open a new one with new rates/conditions.
That you can do anywhere as long as you have a collateral/guarantor.

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stockresearcher 2 days ago

Prepayment penalties are illegal for the vast majority of loans that consumers can get in the US, which makes it a no-brainer to refinance any time the payment saving exceeds the cost of writing a new loan.
The Trump admin has floated the idea of allowing prepayment penalties in home mortgages, BTW.

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- dh2022 2 days ago
  
  Would you mind posting a link where Trump wanted to allow prepayment penalties? This sounds unbelievable.
  Every home owner in the US would be against it (especially the ones who got their mortgages in the past two years at relatively high interest rates).
  
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  stockresearcher 2 days ago
  
  Crap, I was wrong. Bill Ackman is trying to convince Bessent to do it. So while it may happen, it isn’t coming from inside the admin.
  One argument is that it could allow for lower rates, BTW. (This is true, it very well could).
  And also, if it happened it would be for newly issued mortgages. Existing mortgages have language in the contract that you couldn’t just unilaterally change
  
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