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. Does the loan's payment date fit my budget? Do you need, or only want, the item being purchased? What is the total cost of transaction (cost of item purchased plus cost of loan)? Does the loan have a prepayment penalty? If I accept the loan, what is my new debt safety ratio? You're shopping for a big loan, but you have misgivings about Dmitri, 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. DO Dmitri gave you a range of terms and said they'll be worked out at closing. Dmitri encouraged you to shop around. Dmitri said that today is the only day you can secure the loan with favorable terms. When you filled out the application, Dmitri 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. Dmitri said that his loan was most likely the only one you'd be able to obtain. Dmitri went over the fine print, such as late payment charges and prepayment provisions. Dmitri pointed out that the APR and interest rate were different. Your parents may be able to help you with the down payment, but Dmitri told you to assume they will and to enter a down payment on the application including their contribution. MacBook Air What are the characteristics of your reasons for feeling uneasy about Dmitri 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. How many points are added to the base rate? Is there a maximum rate? What changes after a rate adjustment-the monthly payment amount or the number of monthly payments left on the loan? 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. Arises when there are too few alternatives and you wish you had more features or options to select from Keep it simple and select the easiest or least expensive alternative Identify your goals and a framework for evaluating any trade-offs that must be made when making your decision Arises when there are too many complicated choices, such you can become overwhelmed and make poor decisions