Paying Off an Existing Mortgage with a New Mortgage That

question 50

Multiple Choice

Paying off an existing mortgage with a new mortgage that has a lower interest rate is referred to as

• A)mortgage replacement.
• B)mortgage substitution.
• C)mortgage refinancing.
• D)mortgage modification.

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Definitions:

Implied Warranty of Fitness

An assurance, not explicitly stated, that a product will meet a buyer's needs for a particular purpose.

Express Warranty

An explicit promise made by a seller regarding the quality, condition, or performance of the goods being sold.

New England Seafood Chowder

A traditional creamy soup from the New England region made with seafood like clams and fish, potatoes, onions, and celery.

Lost Profits

Potential earnings or revenues that a business or individual did not realize due to an interruption, breach of contract, or other adverse events.