IF I WAIT UNTIL MATURITY TO REFINANCE, I WON’T PAY A “PREMIUM”, RIGHT? WRONG!!!
Whether you (a) refinance and defease now, or (b) wait until maturity to refinance, you will pay all principal and interest due over the life of your loan. If you defease now, interest is paid as a lump sum discounted at treasury rates (because you’re buying a portfolio comprised of government treasuries structured to mature […]