4.2% interest of a 100k loan, as you can see equals to 91k rm in interest over 30 years.. that is to say, you are losing 91k rm by taking a loan today.

Maybe insignificant or a stupid decision you regret down the line, depending if you invest in high margin stocks that give at least 8% annual return, just to cover the 4.2% interest and inflation..

Refinancing your home at 4.2% is a losing sum game and simply does not make sense.. you are neither pulling ahead and have a high chance of regression in your savings especially if you spend the money on non investment items like a vacation or new car, which many stupid people do with this kind of loan.

Now, if the repayments were flexible, then maybe you can benefit from this type or loan and lower the money you pay in interest. Either that, or the loan SHOULD technically be alot lower.. maybe even 1% loan since the fully paid off house is being used as collateral.. i dont see why the banks would charge a high interest rate.. this kind of loan is very secure for banks.

your head.. the market ultimately determines how successful a product is.. this refinancing product is considered a safe bet due to having the fully paid off house as collateral. There is virtually zero risk involved lending out to such a person, hence the interest rate should reflect this.

you may whinge and bitch about this as much as you like, but 1% refinancing loan are very common in USA and america.