Which borrower option is an example of refinancing?

Question

[] Replacing an old student loan with a new student loan that has a lower interest rate
[] Paying the outstanding interest on an open-ended loan
[] Changing payment terms on a mortgage from five years to 10 years
[] Agreeing to a higher interest rate on a personal loan in exchange for lower fees
[] Raising the monthly payment amount on a student loan

Answer 1

Replacing an old student loan with a new student loan that has a lower interest rate is an example of refinancing.