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Study Finds 75 Percent of U.S. Banks Didn’t Hedge Interest Rate Risk; Unrealized Losses on Securities $516 Billion at End of First Quarter
wallstreetonparade.com ^
| September 6, 2023
| Pam Martens and Russ Martens
Posted on 09/09/2023 3:40:19 PM PDT by elpadre
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To: Political Junkie Too
What your posted is true, but what you’re describing isn’t a “refinancing” in the context of my post. A 5-year ARM is a five-year loan, even if the amortization is for 30 years. At the end of the five years the rate is reset for the next term.
A true “refinancing” is when the customer pays off the loan and replaces it with a new one before the term of the loan (30-year fixed rate, 5-year ARM, etc.) expires.
21
posted on
09/10/2023 9:05:32 AM PDT
by
Alberta's Child
(“Freedom is just another word for nothing left to lose.”)
To: Alberta's Child
True, but your point was that the bank can't raise the rates and an ARM allows them to raise the rates without the customer initiating a refinance. The bank can lower the rates, too.
-PJ
22
posted on
09/10/2023 10:12:09 AM PDT
by
Political Junkie Too
( * LAAP = Left-wing Activist Agitprop Press (formerly known as the MSM))
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