Home > Planning > Intermediate
Planning Intermediate: Refinancing Mortgages

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Which of the following is not a reason to refinance your mortgage?
Choose wisely. There is only one correct answer.
To increase the equity in your home. Refinancing in itself does not increase the equity in your home.
2.
When points increase in refinancing agreements, it means interest rates have generally _______.
Choose wisely. There is only one correct answer.
Decreased. Generally, the higher the rate, the lower the points; and the lower the rate, the higher the points.
3.
You can refinance your home mortgage to _______.
Choose wisely. There is only one correct answer.
All of the above. You also can refinance to lower your monthly mortgage payments.
4.
It usually makes sense to refinance your home when you know you will be moving in a year or so.
Choose wisely. There is only one correct answer.
False. It usually makes sense to refinance your home when you know you will be keeping it for a couple of years or more.
5.
Refinancing a mortgage is worth considering only when interest rates drop at least 2 percent.
Choose wisely. There is only one correct answer.
False. Refinancing may be worthwhile even if interest rates drop only by a percentage point or so, IF you plan to keep your home for a long period.