What is a "Grace Period"? O The time between when you stop paying and when your things are repossessed The time between when you make a purchase and when interest is added The time between your monthly payments The time after you pay off your balance and before you make a new purchase on credit Why would you take an adjustable rate mortgage over a fixed rate? O Adjustable rates tend to have lower interest rates than fixed rates O Adjustable rates make it easier to plan your mortgage payments into your spending plan by making them precisely predictable Fixed rates are an older form of mortgage with higher transaction costs o Variety is the spice of life! What happens when you make the minimum monthly payments on your credit card? O The credit card company gets angry you're doing the bare minimum Your debt gets paid off quickly and cheaply You pay the greatest amount in interest for the life of the loan o You will eventually default What is an advantage of a higher credit limit? You are able to make larger purchases if you need to You can more easily take out debt you'll have a hard time repaying Higher credit limits come with lower interest rates Higher credit limits are a sign of maturity of the account holder What is an important factor to look for when shopping for a credit card? Credit limit Interest rate Extra fees All of these are important to look for