3. Refinance of Home and Mortgage Analysis Maximum Points: 7 Assume the Jarretts have decided to refinance their mortgage over a 30-year term and pay the cost of refinance out of pocket. They have asked you the following: A) what will be their new payment (principal and interest only); B) how many months will it take to recoup the cost of refinancing the mortgage and C) how much more will they have to pay every month if they want the mortgage paid off when they retire? In order to prepare an investment policy statement for the Jarretts you provided them with a question. Respond to the following by making recommendations for the Jarretts. 1. Standards of Conduct Maximum Points: 5 Ordinarily your married clients work on these questionnaires together. However, the Jarretts made a copy, and each submitted and signed separate forms without consulting one another. There are material discrepancies between the forms despite the Jarretts telling you, in a joint meeting, that their investment attitudes and risk tolerances are the same. Your paraplanner has already prepared an investment policy statement by resolving all discrepancies in favor of the more conservative answer to the investment questionnaire. You discovered the issue when you reviewed the draft investment policy statement and compared it to the questionnaire. Under the CFP Board Code of Ethics and Standards of Conduct what are your responsibilities with respect to supplying the investment policy statement to the Jarretts? Be sure to reference the specific Standard(s) that might apply. Note: The current CFP Board Code of Ethics and Standards of Conduct document is posted for you under the Supplemental Study Documents Folder. 3. Refinance of Home and Mortgage Analysis Maximum Points: 7 Assume the Jarretts have decided to refinance their mortgage over a 30-year term and pay the cost of refinance out of pocket. They have asked you the following: A) what will be their new payment (principal and interest only); B) how many months will it take to recoup the cost of refinancing the mortgage and C) how much more will they have to pay every month if they want the mortgage paid off when they retire? In order to prepare an investment policy statement for the Jarretts you provided them with a question. Respond to the following by making recommendations for the Jarretts. 1. Standards of Conduct Maximum Points: 5 Ordinarily your married clients work on these questionnaires together. However, the Jarretts made a copy, and each submitted and signed separate forms without consulting one another. There are material discrepancies between the forms despite the Jarretts telling you, in a joint meeting, that their investment attitudes and risk tolerances are the same. Your paraplanner has already prepared an investment policy statement by resolving all discrepancies in favor of the more conservative answer to the investment questionnaire. You discovered the issue when you reviewed the draft investment policy statement and compared it to the questionnaire. Under the CFP Board Code of Ethics and Standards of Conduct what are your responsibilities with respect to supplying the investment policy statement to the Jarretts? Be sure to reference the specific Standard(s) that might apply. Note: The current CFP Board Code of Ethics and Standards of Conduct document is posted for you under the Supplemental Study Documents Folder.