Question

Refinancing a home is usually worthwhile when

A) interest rates have risen.
B) you can increase your monthly payment considerably.
C) you will live in your home long enough to recoup the closing costs.
D) you plan on moving in less than a year.

Answer 1

Refinancing a home is usually worthwhile when you will live in your home long enough to recoup the closing costs.

Step-by-step explanation:

Refinancing a home is usually worthwhile when you will live in your home long enough to recoup the closing costs. When you refinance, you need to pay closing costs, which can include fees for the loan application, appraisal, and title search, among others. It takes time to recoup these costs through savings on your monthly mortgage payments. If you plan on moving in less than a year, you may not have enough time to recover the closing costs and make refinancing worthwhile.