Which borrower option is an example of refinancing?
(1 point)
Agreeing to a higher interest rate on a personal loan in exchange for lower fees
Replacing an old student loan with a new student loan that has a lower interest rate
Changing payment terms on a mortgage from five years to 10 years
Raising the monthly payment amount on a student loan
Paying the outstanding interest on an open-ended loan
1 answer
The option that is an example of refinancing is:
Replacing an old student loan with a new student loan that has a lower interest rate.
Refinancing typically involves taking out a new loan to pay off an existing loan, often with better terms, such as a lower interest rate.
