Answer: Low points paid

**Correct answer: C — Low points paid** Borrowers who paid **low points** when originating the mortgage are more likely to refinance sooner because their refinancing transaction costs are lower. Why the other choices are less likely: - **A:** Recently originated mortgages are generally less likely to prepay than older ones. - **B:** A **small outstanding principal balance** makes refinancing less attractive. - **D:** A significant **burnout effect** means the borrower is less likely to refinance again, not more likely.

Author: Manit Arora