Finance
A Colorado borrower refinances their mortgage to lower their interest rate. The 'break-even' analysis compares:
AThe old and new property values
BThe monthly savings against the refinancing costs to determine how long to recover costs✓ Correct
CThe old and new loan amounts
DThe borrower's current and projected income
Explanation
Break-even = Refinancing Costs / Monthly Savings. The homeowner needs to remain in the home longer than this period for refinancing to make financial sense.
Related Colorado Finance Questions
- A Colorado borrower asks about 'negative amortization.' This occurs when:
- A Colorado buyer asks what 'discount points' are. Each discount point equals:
- A Colorado lender charges a 'prepayment penalty' on a mortgage. This means:
- A Colorado 'VA funding fee' is charged to eligible veteran borrowers to:
- The 'Dodd-Frank Wall Street Reform and Consumer Protection Act' (2010) created which consumer protection agency relevant to mortgage lending?
- A Colorado buyer who is rejected for a mortgage loan is entitled under the Equal Credit Opportunity Act (ECOA) to receive:
- In Colorado, a 'hard money' loan is typically characterized by:
- A point on a mortgage loan is equal to:
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →