Interest rate recharged for refinancing. Its greater than an old rate but below current one. Its a reason to refinance as an alternative or repayment.
An interest rate placed on a refinanced loan this is certainly greater than the rate regarding the old loan but less than the present price supplied on brand new financial loans. Blended rates are often provided by lenders as incentives for consumers to re-finance current low-interest rate loans in place of supplying a purchaser the chance to assume the loan. For instance, if present prices tend to be 10%, and a buyer can believe a loan at 7 per cent, the lender may offer 8 per cent financing to entice the buyer getting brand new financing as opposed to presuming the old mortgage.