Refinancing of a Mortgage Is Recommended When

question 70

Multiple Choice

Refinancing of a mortgage is recommended when:

• A)interest rates rise.
• B)interest rates fall.
• C)the escrow account balance declines.
• D)two or more points are required by the lender at the time of closing.
• E)the escrow account balance increases.

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Definitions:

Accommodation

A cognitive process in Jean Piaget's theory where individuals adjust their schemas (mental models) to new information.

Inattentional Blindness

A psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to a lack of attention.

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectations, experiences, and context.

Feature Analysis

A method in cognitive psychology for understanding how the human mind perceives and processes information by breaking down stimuli into component features.