Bad Credit Refinance Loan Quiz

Knowledge is one of the most powerful tools in the world. A person that is given everything but does not possess knowledge is doomed to lose it all. So how much do you know about a bad credit refinance loan? Well, luckily you will be able to test that knowledge by taking the short quiz below. Let’s see how much you really know.

What is a break-even analysis?

a)      Calculation to find your mortgage payment amount

b)      Calculation to find how long it will take to pay off all your refinancing fees

c)       Calculation to find the interest you owe

The correct answer is B. A break-even analysis will allow you to see if it is worth it for you to refinance your loan. If it will take longer to pay off the fees than the time you will be living in your home, then you would not want to spend the time and money to refinance.

Where is the best place to look for lenders?

a)      Online

b)      Newspaper

c)       T.V.

The correct answer is A. You will have the best chance of finding a low interest rate online. Since there is so much competition on the internet, lenders are forced to offer very low rates in order to stay in business. As a consumer, you can take advantage of the law of supply and demand in this situation.

How should I use the cash savings from the lower mortgage payments?

a)      For goods and services that you want

b)      To pay off credit card debt

c)       To pay for you medical expenses

The correct answers are b and c. You need to use the savings to pay for important expenses. You may want that new car, but paying down your existing credit card debt or medical expenses must take priority. Make the most of your bad credit refinance loan.

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