Zusammenfassung:
Almost half of mortgage lending to homeowners in Denmark consists of 30-year fixed-rate loans. The loans are callable, so homeowners can redeem their loan and take out a new one if, for example, they want to refinance at a lower rate if interest rates fall. We calculate a financial incentive for each fixed-rate mortgage and show that only half of the loans with a refinancing incentive are actually refinanced. This indicates that more homeowners could have strengthened their financial resilience by responding to the incentive, especially among homeowners with lower incomes.