Refinancing a home loan without a tangible benefit to the borrower is referred to as what?

Refinancing a home loan without a tangible benefit to the borrower is known as flipping. This practice involves taking advantage of the mortgage process to repeatedly refinance a loan, often resulting in little or no financial gain for the homeowner, and can lead to increased debt and costs over time. It can be detrimental to borrowers, as they might face higher fees, interest rates, or extended loan terms without a corresponding improvement in their financial position.

In contrast, the other terms have specific meanings. High cost refers to loans that have higher fees and interest rates, often aimed at those with poorer credit or financial circumstances. Nontraditional can describe loan products that don't fit into standard categories, often leading to more elaborate terms that may not align with conventional lending standards. Packing involves including unnecessary fees or products in a mortgage loan, which can mislead borrowers regarding the actual cost of their loan.