In Denmark, with a realkredit loan. The loan is funded by bonds that investors buy. The realkredit institution manages these loans and makes sure the investors get paid back.
The refinancing part is essentially if the interest rates go up I can ask to pay those higher interest and bit more per month and then my total mortgage debt goes down.
In some cases you can save a lot of money by doing that.
It depends.
Also monthly payment is misleading.
You pay quarterly not monthly.
So its calculated maybe 10.000DKK monthly but you will always pay 30.000DKK quartely.
Don´t know why its always described as monthly in Denmark when no one pays realkredit on a monthly basis.
It could be because the mortgage you can get is based on a monthly salary. But I am just guessing.
No idea.
Its a good system though.
IMHO Denmark is very much a delusional capitalist country with socialist tax rates but this realkredit system is really superb.
The refinancing part is essentially if the interest rates go up I can ask to pay those higher interest and bit more per month and then my total mortgage debt goes down. In some cases you can save a lot of money by doing that. It depends.
Also monthly payment is misleading. You pay quarterly not monthly. So its calculated maybe 10.000DKK monthly but you will always pay 30.000DKK quartely.
Don´t know why its always described as monthly in Denmark when no one pays realkredit on a monthly basis. It could be because the mortgage you can get is based on a monthly salary. But I am just guessing. No idea.
Its a good system though. IMHO Denmark is very much a delusional capitalist country with socialist tax rates but this realkredit system is really superb.