Refinance Quiz

Make sure you know what to expect before moving forward with a refinance.

1

Which of the following is a reason to consider refinancing your mortgage?

All of the above. Depending on your situation, a refinance can help lower your monthly payment, change the term of your loan and/or allow you to access your home equity by taking cash out.

question 1/5

2

True or false: Refinancing your mortgage will always save you money.

False. Potential savings depend on a number of factors including market conditions, the amount of equity you have in your home, how long you plan to stay in the home and more.

question 2/5

3

You can expect to spend _____ of your loan principal to refinance your mortgage.

The total cost to refinance your mortgage will be determined by your lender, your credit score and your location, but you can expect to spend 3%–6% of your loan principal.

question 3/5

4

True or false: Some refinance mortgage programs allow you to use your home’s value to finance home improvements and renovation projects.

True. You can finance your renovations and home improvements with either a cash-out refinance or a specialty mortgage product designed for renovation financing, such as Freddie Mac’s CHOICERenovation®, CHOICEReno eXPress® and GreenCHOICE Mortgages®.

question 4/5

5

Which of the following is NOT a true statement:

You have to use your current lender to refinance your loan. This is not true. In fact, it is recommended that you compare loans from multiple lenders to ensure you are getting the best deal for your specific situation.

question 5/5

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