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. Do the loan's monthly payments fit in my budget? Where is the lending institution located? XWhat is the loan's APR? XDoes the loan have a prepayment penalty? What late payment charges, if any, can be accessed, and when? 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. |John told you that the interest rate is the only important fee to worry about and that discussing the APR is an unnecessary complication. John went over the fine print, such as late payment charges and prepayment provisions. John encouraged you to shop around. When you filled out the loan application, John told you to leave out the smaller amounts you owe to department stores. John discussed options for taking out a smaller loan, such as selling current assets to raise a bigger down payment John pointed out that the APR and interest rate were different. John spent most of the time emphasizing benefits of loans with balloon payments and interest-only payments. John said that today is the only day you can secure the loan with favorable terms. What are characteristics of your reasons for feeling uneasy about John the loan officer? Check all that apply. Feeling under pressure to make a decision The loan officer's embellishment of the facts The way the loan officer omitted pertinent information Your friend suggested you look into a variable-rate loan. What questions should you ask? Check all that apply. What changes after a rate adjustment-the monthly payment amount or the number of monthly payments left on the loan? How many points are added to the base rate? 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. Be prepared to ask for assistance 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 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. Do the loan's monthly payments fit in my budget? Where is the lending institution located? XWhat is the loan's APR? XDoes the loan have a prepayment penalty? What late payment charges, if any, can be accessed, and when? 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. |John told you that the interest rate is the only important fee to worry about and that discussing the APR is an unnecessary complication. John went over the fine print, such as late payment charges and prepayment provisions. John encouraged you to shop around. When you filled out the loan application, John told you to leave out the smaller amounts you owe to department stores. John discussed options for taking out a smaller loan, such as selling current assets to raise a bigger down payment John pointed out that the APR and interest rate were different. John spent most of the time emphasizing benefits of loans with balloon payments and interest-only payments. John said that today is the only day you can secure the loan with favorable terms. What are characteristics of your reasons for feeling uneasy about John the loan officer? Check all that apply. Feeling under pressure to make a decision The loan officer's embellishment of the facts The way the loan officer omitted pertinent information Your friend suggested you look into a variable-rate loan. What questions should you ask? Check all that apply. What changes after a rate adjustment-the monthly payment amount or the number of monthly payments left on the loan? How many points are added to the base rate? 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. Be prepared to ask for assistance 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