Quote:
Originally Posted by onetwo_threefour
Ah but like any good gambling house the bank makes sure the odds are in their favour by scaling the rates differently for different terms so that longer terms that put the bank at more risk of losing out on increases have higher rates and the penalty completely offsets the loss of a borrower who jumps ship halfway through the term if rates drop. So the bank doesn't take much risk at all in that sense. The borrower takes all the risk on that side of the equation.
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Yeah, the bank is never setting anything up to actually help the client more than themselves. I find that a good mantra to keep in mind during their spiels.
As a side note... I JUST got the meaning of your username right now.
