All of the following are factors which one should include in the decision to refinance EXCEPT....
All of the following are factors which one should include in the decision to refinance EXCEPT.
- The consideration of the tax gains from interest saved.
- The opportunity cost of investing the new loan fees elsewhere and not refinancing.
- Bringing future savings into present value.
- All of the above should be included in the decision to refinance.
Homework Answers
Option (D) is correct
All the options given should be included in the decision to refinance.
Option (A) is correct as if there are incremental tax gains from interest saved, then one should go for refinancing.
Option (B) is correct as one should consider the opportunity cost of investing in the new loan and compare it with refinancing.
Option (C) is correct as all the future savings should bring to present value to check whether refinancing is beneficial.
Add Answer to:
All of the following are
factors which one should include in the decision to refinance
EXCEPT....
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