The banker from the credit union that mortgaged my house has just reached out with a refinance special, that would reduce my mortgage rate.
I understand that I will need to pay for refinancing and they will make money out of this. However, I would only do this if this is beneficial to me, i.e. the cost of refinancing is lower than savings from reduced rate. In other words the credit union would lose some money in this scenario (they would get more in the long term from the interest).
Why are they doing this and how do they plan to make money off me? Is it the case that my mortgage was already sold out to someone else and my credit union is not involved in the payments anymore, so they are just trying to set a new deal with me. Why whoever purchase the mortgage didn't have a legal protection against this (i.e. prevent the same bank from undercutting them thi way)?