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1.
You may want to refinance your adjustable-rate mortgage if you want to reset your mortgage's lifetime adjustment cap.
True. When you replace your old adjustable-rate mortgage with a new one at a lower rate, you usually reset your mortgage's adjustment cap to a lower level.
2.
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.
3.
You can refinance your home mortgage to _______.
All of the above. You also can refinance to lower your monthly mortgage payments.
4.
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.
5.
No-cost refinancing frees a borrower from most costs associated with a refinanced mortgage.
False. No-cost refinancing offers a mortgage with zero points, usually at a somewhat higher interest rate. Other costs normally associated with closing still must be paid.