Personal Finance Ch.5 Quiz #2

A ________ is financial aid, but the money will need to be paid back once you leave college Student loan
The loan period does not affect the total cost of ? The loan
Samantha has a loan with an interest rate of 6.67% now, but the rate could increase 2% next year. What lending term best describes this loan? Variable rate loan
A loan officer will use the ____________________ to determine if you will be approved for a loan 4 C’s of lending
A short term mortgage in which small payments are made until the completion of the term, when the entire balance is due, is: A balloon loan
Serena would like to calculate the total cost of a car loan. She should: Use an online calculator or the formula P(1+R/12)n
What are the benefits of buying a home? -the value of He home generally increases over time -the equity in your home increases-once the mortgage is paid in full, you own the home-you can make improvements to the place
What is the total monthly payment for this mortgage? $1,285
Instead of getting a student loan which needs to be paid back with interest, what are some alternatives to help pay for the cost of college? Grants and scholarships
What does a mortgage payment include? -taxes-principal-interest-homeowners insurance -PMI
Amber asked her dad to co-sign her loan. If she makes a late payment, what may happen? It may be reported in her dads credit report
Jamal tried to apply for a mortgage. However, he was turned down for the loan because the loan officer noticed that he has made late payments on his credit card and he has not made payments on a loan. What question when he have asked himself before deciding to buy a home? Do you have a good credit report and credit score?
What are the continuing costs of this apartment? $1,025

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