It Is Advantageous for the Residential Mortgage Holder to Refinance

question 111

True/False

It is advantageous for the residential mortgage holder to refinance because market interest rates on new mortgages are less than interest rates on existing mortgages.

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Definitions:

Trust Fund Bonds

Financial instruments issued by a trust to raise funds for investment purposes, backed by the assets managed within the trust.

Government Borrowing

The process by which a government raises funds through issuing debt instruments, such as bonds, to finance public spending beyond tax revenues.

Surplus Funds

Excess money that remains after all expenses and obligations have been met, which can be saved or invested.

Social Security

A government program that provides financial assistance to people with inadequate or no income, primarily targeting the elderly, disabled, and survivors of deceased workers.