Suppose a homeowner is reluctant to refinance until he is reasonably sure that interest rates are not going to fall appreciably from where they currently are.In this case,the
Homeowner appears to be concerned about which of the following costs associated with refinancing?

Question

Quizplus · Accepted Answer

The homeowner is concerned about the opportunity cost, which is the potential benefit lost if interest rates fall after refinancing, resulting in missing out on lower rates.

Suppose a Homeowner Is Reluctant to Refinance Until He Is