A Borrower Is Considering Refinancing and Finds That the Return,considering

question 1

True/False

A borrower is considering refinancing and finds that the return,considering refinancing charges and lower payments,is 10%.The borrower can earn 12% on alternative investments so the property should be refinanced.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Hard Money

Funds contributed directly to a political candidate or party that are regulated by law.

Foreclosures

The legal process by which a lender takes control of a property, evicts the homeowner, and sells the home when the homeowner fails to make mortgage payments.

Checks and Balances

A system in which different parts of an organization or government have powers that affect and control the other parts, ensuring no single part can become too powerful.