A homeowner can refinance the mortgage loan on the house at a lower rate when the interest rates go down.The right to refinance at a lower rate is a(n):

Name: A homeowner can refinance the mortgage loan on the house at a lower rate when the interest rates go down.The right to refinance at a lower rate is a(n):
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The right to refinance at a lower rate is a call option, as the homeowner has the option to purchase (refinance) the mortgage loan at a lower price (interest rate).

A Homeowner Can Refinance the Mortgage Loan on the House