Finance
A NH homeowner refinances their existing mortgage with a new loan. The primary reasons homeowners refinance include all of the following EXCEPT:
ATo obtain a lower interest rate and reduce monthly payments
BTo cash out equity for home improvements or debt consolidation
CTo change from an ARM to a fixed-rate mortgage
DTo automatically discharge the existing mortgage lien at no cost✓ Correct
Explanation
Common reasons to refinance include lowering the interest rate, changing loan terms, accessing home equity (cash-out refinance), or converting from an ARM to a fixed rate. A refinance does discharge the old mortgage, but there are significant closing costs (typically 2–5% of the loan amount)—it is not free.
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