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1.
To calculate how long it will take for a refinance to break even with your current mortgage, you need to _______.
All of the above. These are the basic steps in calculating your break-even date.
2.
When you refinance your mortgage, you sometimes can take cash out of the equity you've built in your home for any reason.
True. While you can use the equity you've built in your home for any reason, it may especially make sense to use these funds for consolidation of high-interest debts.
3.
The 2 percent rule suggests that homeowners should refinance when interest rates increase 2 percentage points or more.
False. The 2 percent rule suggests that homeowners should refinance when interest rates DECREASE by 2 percentage points or more.
4.
It usually makes sense to refinance your home when you know you will be moving in a year or so.
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.
Home refinancing costs may include a(n) _______.
Property appraisal. A property appraisal is sometimes required prior to a refinancing.