Question

Assume that you chose the 80% LTV mortgage from the previous section, but after 10 years, are thinking about refinancing for $2,500. You will only be in the home for another 5 years.

Answer 1

Refinancing a mortgage after 10 years with an 80% LTV, considering refinancing for $2,500 and staying in the home for another 5 years.

Step-by-step explanation:

Refinancing a mortgage means replacing an existing mortgage with a new one. In this scenario, the student is considering refinancing after 10 years of having an 80% loan-to-value (LTV) mortgage. The student is thinking about refinancing for $2,500 and plans to stay in the home for another 5 years. Refinancing can be beneficial if it lowers interest rates or reduces the loan term, but it is important to carefully consider the costs involved, such as closing costs and fees.