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Planning Intermediate: Refinancing Mortgages

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1.
You can refinance your home mortgage to _______.
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All of the above. You also can refinance to lower your monthly mortgage payments.
2.
Refinancing a mortgage is worth considering only when interest rates drop at least 2 percent.
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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.
3.
To calculate how long it will take for a refinance to break even with your current mortgage, you need to _______.
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All of the above. These are the basic steps in calculating your break-even date.
4.
Which of the following is not a reason to refinance your mortgage?
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To increase the equity in your home. Refinancing in itself does not increase the equity in your home.
5.
Home refinancing costs may include a(n) _______.
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Property appraisal. A property appraisal is sometimes required prior to a refinancing.