1. The Steeles are considering substituting a fixed rate loan for the adjustable rate loan they presently have. What factors should the Steeles consider before exchanging one type of loan for another?
2. How long must the Steeles remain in their present home if they are to break-even on the refinancing?
3. Help the Steeles in their decision making by drawing up a list of the potential benefits and the potential costs of mortgage refinancing.