Suppose a Homeowner Is Reluctant to Refinance Until He Is

Multiple Choice

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?

A) Opportunity cost
B) Tax consequences
C) Default risk
D) Upfront fees