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Choose the best scenario for refinancing.

Choose the best scenario for refinancing. 

  • You have a current mortgage at 5% and have been approved for a new mortgage at 3.75%. You'll break even on the closing costs in two years, and you don't plan to move for at least five. 

  • You intend to move in about nine months, but you have been approved for a mortgage with an interest rate two whole points lower than your current rate.

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Answer #1

Answer: Option 1 ( you have a current mortgage ...... )

Mortgage rates can changes based on the conditions with the borrower which is an ideal scenario for refinancing

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Answer #2

3. The correct option is a "You have a current mortgage at 5% and have been approved for a new mortgage at 3.75% you'll break even on the closing costs in two years and you don't plan to move for at least five"


Explanation: Refinancing is an option in which mortgage's interest rate can be changed on the discretion of borrower.


answered by: Spring
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