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.
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.
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.
One disadvantage of refinancing your mortgage is that you may lose some of the equity in your home.
Choose wisely. There is only one correct answer.
True. If you cash out a portion of your equity when you refinance, it may take you longer to own your home debt-free.
4.
Home refinancing costs may include a(n) _______.
Choose wisely. There is only one correct answer.
Property appraisal. A property appraisal is sometimes required prior to a refinancing.
5.
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.