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.