Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Question 3 of 10
Which of the following is a disadvantage to refinancing?
O A. Prepayment penalties
B. Lower interest rates
O C. Locked rates
D. Lower monthly payments

Sagot :

Samawati

Answer:

A. Prepayment penalties

Explanation:

Refinancing a loan has the benefits of a lower interest rate, which results in some cost-saving. However, when seeking to refinance, there cost that have to be incurred. The customer has to apply for refinancing, which attracts an application fee. The customer is also required to pay closing costs for the previous loan.

Lower interest rates, Locked rates, and Lower monthly payments are advantages of refinancing.

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.