When Is Refinancing a Home Worthwhile

question 12

Multiple Choice

When is refinancing a home worthwhile?

• A)When interest rates have dropped more than two percent
• B)When you can decrease your monthly payment significantly
• C)When the penalty cost is less than the financial benefit
• D)When interest rates have dropped significantly

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Definitions:

Marginal Tax Rate

The tax rate that applies to the next additional increment of a taxpayer's taxable income.

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxation by the government.

Marginal Tax Rate

The rate of tax applied to the last dollar of income or the next dollar of taxable income earned.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions.