Loan Terms
The amount of money borrowed is called
A- Debt
B- Principal
C-Interest
B- Principal
What is a down payment?
A large sum of money you pay to make your principal smaller
Used to determine the financial ability of a borrower
Credit Score
What does fixed rate mean?
The interest rate that varies during the life of the loan
A- Fixed Rate
B- Flex Rate
C- Adjustable Rate
C- Adjustable Rate
Failure to pay back a loan
A- Collateral
B- Default
C- Prison
B- Default
What does variable rate mean?
The interest rate could change during the length of the loan.
A financial asset is called
A- Principal
B- Savings
C- Collateral
C- Collateral
Why is a payday loan considered predatory?
A-They throw you in shark infested water if you don't pay on time.
B- They are misleading
C- They are unaffordable
D- Both B and C
D- they are misleading and unaffordable.
The price borrowers pay to use the lenders money
A- Interest
B- Equity
C- Principal
A- Interest
The difference between the value of a property and how much is still owed on the mortgage.
A- Principal
B- Equity
C- Collateral
B- Equity
How will a high credit score influence your loan?
Lower interest rate and higher approval.
Someone who will take over the loan for a borrower if the borrower fails to make payments.
A- A loser
B- Co-signer
C- Next of kin
B- Co-signer
The interest rate that remains the same while the loan is being repaid
A- Equity
B- Fixed Rate
C- Term
B- Fixed Rate
The specified time the borrower is given to repay the loan.
A- Term
B-10 years
C-When the bank says so
A- Term