5. General factors to consider when shopping for a consumer loan Aa Aa Factors to Consider before Taking Out a Consumer Loan You've made the decision to purchase an item that is affordable only with a loan. When shopping for a loan, there are many aspects of the loans that you should examine. Which of the following questions should be asked and answered about a specific loan proposal before accepting a lender's offer? Select all that apply If I accept the loan, what is my new debt safety ratio? what is the total cost of transaction (cost of item purchased plus cost of loan)? What is the loan's APR? Does the loan have a prepayment penalty? Is the loan collateralized? You're shopping for a big loan, but you have misgivings about John, the loan officer, at an institution you just visited What are some reasons that may have you uneasy about accepting a loan there? Check all that apply When you filled out the application, John said if you weren't sure about something on it, you could take the application home and complete it when you had the correct answers John gave you a range of terms and said they'll be worked out at closing John said that today is the only day you can secure the loan with favorable terms John went over the fine print, such as late payment charges and prepayment provisions. When you filled out the loan application, John told you to leave out the smaller amounts you owe to department stores John encouraged you to shop around Your parents may be able to help you with the down payment, but John told you to assume they will and to enter a down payment on the application including their contribution John discussed options for taking out a smaller loan, such as selling current assets to raise a bigger down payment. What are characteristics of your reasons for feeling uneasy about John the loan officer? Check all that apply The way the loan officer omitted pertinent information The loan officer's embellishment of the facts Feeling under pressure to make a decision Your friend suggested you look into a variable-rate loan. What questions should you ask? Check all that apply What is the interest rate tied to? what changes after a rate adjustment-the monthly payment amount or the number of monthly payments left on the loan? How often is the rate subject to change? Can I afford the maximum possible monthly payment? Given the long list of relevant loan-related considerations described above, the paradox of choice often arises when attempting to make borrowing decisions. Which of the following phrases addresses the characteristics and recommended solutions for this phenomenon? Check all that apply 5. General factors to consider when shopping for a consumer loan Aa Aa Factors to Consider before Taking Out a Consumer Loan You've made the decision to purchase an item that is affordable only with a loan. When shopping for a loan, there are many aspects of the loans that you should examine. Which of the following questions should be asked and answered about a specific loan proposal before accepting a lender's offer? Select all that apply If I accept the loan, what is my new debt safety ratio? what is the total cost of transaction (cost of item purchased plus cost of loan)? What is the loan's APR? Does the loan have a prepayment penalty? Is the loan collateralized? You're shopping for a big loan, but you have misgivings about John, the loan officer, at an institution you just visited What are some reasons that may have you uneasy about accepting a loan there? Check all that apply When you filled out the application, John said if you weren't sure about something on it, you could take the application home and complete it when you had the correct answers John gave you a range of terms and said they'll be worked out at closing John said that today is the only day you can secure the loan with favorable terms John went over the fine print, such as late payment charges and prepayment provisions. When you filled out the loan application, John told you to leave out the smaller amounts you owe to department stores John encouraged you to shop around Your parents may be able to help you with the down payment, but John told you to assume they will and to enter a down payment on the application including their contribution John discussed options for taking out a smaller loan, such as selling current assets to raise a bigger down payment. What are characteristics of your reasons for feeling uneasy about John the loan officer? Check all that apply The way the loan officer omitted pertinent information The loan officer's embellishment of the facts Feeling under pressure to make a decision Your friend suggested you look into a variable-rate loan. What questions should you ask? Check all that apply What is the interest rate tied to? what changes after a rate adjustment-the monthly payment amount or the number of monthly payments left on the loan? How often is the rate subject to change? Can I afford the maximum possible monthly payment? Given the long list of relevant loan-related considerations described above, the paradox of choice often arises when attempting to make borrowing decisions. Which of the following phrases addresses the characteristics and recommended solutions for this phenomenon? Check all that apply