Finance

A North Dakota borrower refinances their home mortgage to obtain a lower interest rate. This action is called a:

ANovation
BRate-and-term refinance✓ Correct
CCash-out refinance
DMortgage modification

Explanation

A rate-and-term refinance replaces an existing mortgage with a new loan with a lower rate or different term, without significantly increasing the loan balance. The borrower's goal is reduced monthly payments or interest costs.

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