When Is Refinancing a Home Worthwhile

question 57

Multiple Choice

When is refinancing a home worthwhile?

• A)When interest rates have dropped two percent
• B)When you can can increase your monthly payment considerably
• C)When the penalty cost is less than the financial benefit
• D)When you have a closed mortgage with a twenty percent lump sum annual payment option

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Definitions:

Behavioral Consistency

The tendency for people to behave in the same way in different situations, reflecting the stable traits or dispositions of their personality.

Personality

The amalgamation of traits or attributes that create a person's unique character and ways of behaving.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way to uncover unconscious thoughts and feelings.

Reality

The state of things as they actually exist, outside of individual perceptions or interpretations.