Answer: Low points paid

A mortgage with **low points paid** is most likely to prepay sooner rather than later because lower points mean lower up-front refinancing cost and less lock-in to the existing mortgage. Why the others are less likely: - **Recently originated mortgage (young age):** young loans usually have lower prepayment rates because of the seasoning effect. - **Low outstanding principal balance:** refinancing is often less attractive when the remaining balance is small because fixed refinancing costs take up a larger share of the benefit. - **Previously refinanced, and burnout effect is significant:** burnout reduces the likelihood of further prepayment, since borrowers who were most likely to refinance have often already done so.

Author: Manit Arora