A borrower refinances from a 30-year loan with 20 years remaining to a new 30-year loan. What is the primary financial risk of this strategy?
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A
The new interest rate will always be higher
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B
The borrower restarts the amortization clock, paying more total interest over time
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C
The LTV will automatically exceed 80%
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D
The borrower will owe a prepayment penalty on the new loan