Hacker News new | ask | show | jobs
by Panzer04 748 days ago
The fixed prepayment is what makes them insane. Fixed interest instruments are common, at least at the institutional level, but no penalty prepayment option is the crazy part, because it exposes the lender to all the downside if rates go up and none of the upside if they go down.
1 comments

That makes sense. Refinancing is essentially that.