Carol has had a $145,000 fixed-rate mortgage for 5 years at 6.25% and is considering refinancing. She can now get an 80/20 mortgage with 4.5% and
9.5% interest, respectively. Based only on this information, should she
refinance?
the ouse
A. No, she has too much equity built up
B. No, the two blended interest rates ar nes ne.
O o
Teri an the old blinded
C. Yes, the new blended interest rate is
interest rate.
D. No, the new blended interest rate is higher than the old interest
rate