bryan1721
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Carol has had a $145,000 fixed-rate mortgage for 5 years at 6.25% and is
considering refinancing. She can now get an 80/20 mortgage with 4.5% and
9.5% interest, respectively. Based only on this information, should she
refinance?

A. No; she has too much equity built up in the house.

B. No; the two blended interest rates are the same.

C. No; the new blended interest rate is higher than the old interest
rate.

D. Yes; the new blended interest rate is lower than the old blended
interest rate.

Answer :

misterturtl

Answer:

No, the new blended interest rate is lower than the old blended interest rate.

Step-by-step explanation:

A P E X

shubhamchouhanvrVT

The answer will be  No; the new blended interest rate is higher than the old interest rate.

what is mortgage?

A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you've borrowed plus interest.

Mortgage loans are used to buy a home or to borrow money against the value of a home you already own

The interest rate previously is 4.5% and second time the interest rate is 9.5% so the new rate is higher than the old interest rate.

Hence ;the new blended interest rate is higher than the old interest

rate.So she should not refinance.

To know more about mortgage follow

https://brainly.com/question/1318711

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