Paying off an existing mortgage with a new mortgage that has a lower interest rate is referred to as
A)mortgage replacement.
B)mortgage substitution.
C)mortgage refinancing.
D)mortgage modification.

Question

Quizplus · Accepted Answer

Paying off an existing mortgage with a new mortgage that has a lower interest rate is called mortgage refinancing. It is a common way for homeowners to save money on their monthly mortgage payments and potentially reduce the overall amount of interest they pay over the life of the loan. Mortgage replacement and mortgage substitution are not commonly used terms, and mortgage modification refers to changes made to an existing mortgage without replacing it with a new one.

Paying Off an Existing Mortgage with a New Mortgage That