Question

16.
How can someone in debt use refinancing to improve his or her financial burden? choose two

A.
To reduce overall amount owed

B.
To change type of interest applied to the loan

C.
To change amount of interest

D.
To reduce monthly amount owed

Answer 1

C and D.

- C: Refinancing can lower the interest rate (change the amount of interest) you pay.
- D: It can also lower your monthly payment by getting a lower rate or spreading payments over a longer term.