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At the moment I'm writing this, Wells Fargo, is quoting a 30-Year Fixed Rate with an interest rate of 2.75% if you are purchasing a home, while the same loan has a rate of 3.25% if you are refinancing. Other banks are similar, although the numbers vary slightly.

Why would this be? It's the same property, the same loan amount, the same obligation and likelihood of paying it back, so why does the bank differentiate between these two kinds of loans?

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    This is not the same question. The other question was asking about the historical development of this practice, and also doesn't really have a satisfying answer. My question is asking for the reason behind the practice. Commented Sep 9, 2020 at 11:50

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