Why does the yield associated with refinancing a mortgage go down when the borrower holds the property for fewer years? Select all that apply. (Hint: 3 of 5 options are correct)

Group of answer choices

The borrower has fewer years to benefit from the lower monthly payments on the refinanced loan

Interests rates usually go up over time, so the borrower has fewer years locked into a lower interest loan

The borrower pays the refinancing costs upfront

The borrower has fewer years to recover the refinancing costs

Refinanced loans come with prepayment penalties whereas original loans do not

3 of 5 answers are correct.