Refinancing Quiz

1. What is mortgage refinancing?

Getting a second mortgage Replacing an existing mortgage with a new one Taking out a home equity loan Paying off a mortgage early

2. What is a cash-out refinance?

Refinancing to get a lower rate Refinancing for more than you owe and taking the difference in cash Refinancing to remove PMI Paying off your mortgage

3. What is the break-even point in refinancing?

When your home value equals your mortgage The time it takes for monthly savings to exceed refinancing costs When interest rates are lowest When you reach 20% equity

4. What are closing costs for refinancing?

The same as your original down payment Fees associated with obtaining a new mortgage Your monthly payment Your property taxes

5. What is a rate-and-term refinance?

Refinancing to get cash out Refinancing to change your interest rate or loan term without taking cash Refinancing to an ARM Refinancing to a balloon loan

6. How long does it typically take to refinance a mortgage?

1 week 30-45 days 6 months 1 year

7. Does refinancing reset your loan term?

No, the term stays the same Yes, you start a new loan term from the beginning Only if you cash out Only for ARMs

8. What is streamline refinancing?

Refinancing without any documentation A simplified refinancing process with reduced documentation for government loans Refinancing to a shorter term Refinancing with no closing costs

9. When is it not a good time to refinance?

When you plan to stay in your home for a short time When rates are significantly lower When you have good credit When you can lower your monthly payment

10. What is a no-closing-cost refinance?

Free refinancing Closing costs are rolled into the loan or paid through a higher interest rate Refinancing without any fees A government program

Quiz Results