Which of the following is a FALSE statement in regard to refinancing a home loan?
A) Lenders are free to set their own requirements for refinancing a loan
B) Income tax laws may affect the savings in refinancing
C) A 2 percent reduction in interest rate is a profitable refinancing in every case
D) A major problem is the appraised value of the property may be less than the balance due on the existing mortgage loan

Question

Quizplus · Accepted Answer

A 2 percent reduction in interest rate may not always yield a profitable refinancing as it depends on various factors such as the remaining term of the existing loan, closing costs, and the borrower's overall financial situation. Therefore, this statement is false.

Which of the Following Is a FALSE Statement in Regard