1. Assume you've recently taken out a $400,000, 30-year 7% fixed rate mortgage. During the next year 30-year fixed mortgage rates have declined to 6% with Zero Points. Would it be economically prudent to refinance your original mortgage loan under the new interest rate conditions? Why?

2. How much would your monthly payment decline if your refinanced a $400,000, 30-year, 7% fixed rate mortgage with a 30-year, 6%, fixed rate mortgage?

3. What are the major types of housing available in the United States?