2. The marginal cost (MC) associated with refinancing the loan is $6,500. Refinance the loan when: a. The MC associated with refinancing is higher than $6,500 b. The MC associated with refinancing is lower than $6,500 c. The Marginal Savings is greater or equal to the MC d. The marginal Benefit is relatively lower than the MC 3. The change in the loan balances is calculated when doing refinancing, because loans with different interest rates pay-down at the same rate. a. True b. False _4. Graduated Payment Mortgages (GPM) loans have variable interest rates tied to an index throughout the life of the loan and has continuous rate adjustments each and every year during the life of the loan. b. False a. True