5. General factors to consider when shopping for a consumer loan 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? Check all that apply. What is the likelihood that in the near future, you will receive a raise at work? What late payment charges, if any, can be accessed, and when? What is the total cost of transaction (cost of item purchased plus cost of loan)? Does the loan have a prepayment penalty What is the loan's APR? You're shopping for a big loan, but you have misgivings about Shen, 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. Shen told you that the interest rate is the only important fee to worry about and that discussing the APR is an unnecessary complication Shen discussed options for taking out a smaller loan, such as selling current assets to raise a bigger down payment When you filled out the loan application, Shen told you to leave out the smaller amounts you owe to department stores. Your parents may be able to help you with the down payment, but Shen told you to assume they will and to enter a down payment on application including their contnbution Shen gave you a range of terms and said they'll be worked out at closing When you filled out the application, Shen 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. D) Shen volunteered pertinent information that you didn't even know enough to ask about. Shen spent most of the time emphasizing benefits of loans with balloon payments and interest only payments, What are the characteristics of your reasons for feeling uneasy about Shen the loan officer? Check all that apply. Feeling under pressure to make a decision The way the loan officer omitted pertinent information The loan officer's embellishment of the facts 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? How often is the rate subject to change? Can I afford the maximum possible monthly payment? How many points are added to the base rate? Given the long list of relevant loan-related considerations described above, the paradox of choice often anses when attempting to make borrowing decisions. Which of the following phrases addresses the characteristics and recommended solutions for this phenomenon? Check all that apply Arises when there are too few alternatives and you wish you had more features or options to select from Arises when there are too many complicated choices, such you can become overwhelmed and make poor decisions Identify your goals and a framework for evaluating any trade-offs that must be made when making your decision Be prepared to ask for assistance