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Threshold for refinancing
The financial definition for Threshold for refinancing:
The point when the weighted-average coupon of an MBS is at a level to induce homeowners to prepay the mortgage in order to refinance to a lower-rate mortgage, generally reached when the weighted-average coupon of the MBS is 2 percentage points or more above currently available mortgage rates.
Similar MatchesRefinancingRefinancing An extension and/or increase in amount of existing debt.
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