Loan Basics
What is the initial amount of money borrowed called?
What is the Principal
Borrow repeatedly up to a limit?
What is revolving credit?
What are the regular payments you make on a loan called?
What are monthly payments?
Loan for buying real estate?
What is a mortgage?
Non-credit card, auto, mortgage loan example?
What is a student loan?
Longer term = higher/lower monthly payment?
What is Lower
Main cost of carrying a balance?
What is interest?
What happens to the amount of principal you owe with each loan payment?
What is it decreases?
Initial mortgage costs besides loan?
What are closing costs?
Secured vs. unsecured loan key difference?
What is collateral?
what causes higher total interest?
What is Higher Interest Rate
"Minimum payment" good idea?
What is no
If you pay more than your scheduled monthly payment, where does the extra money usually go?
What is towards the principal?
Down payment size affects what?
What is loan principal and total interest?
What might a lender require if you take out a secured loan?
what is collateral
What is the cost of borrowing money called?
What is Interest
What is a plastic card that lets you borrow money to pay for things?
What is a credit card
Why might a lender offer you a lower monthly payment by extending your loan term?
What is to make the payments more affordable by spreading them over a longer time?
Fixed vs. variable rate: pros/cons?
What is fixed = predictable, variable = potentially lower initial but can increase?
Common reason for a personal loan?
What is debt consolidation?
Shorter term's impact on monthly payment & total interest?
What is higher monthly payment and lower total interest?
With a credit card balance of $5,500 and an interest rate of 15%, what is the monthly payment if you want to pay it off in 12 months?
What is $496
Besides interest and principal, what other costs might be included in a loan's monthly payment (especially for mortgages)?
What are escrow payments for things like property taxes and homeowner's insurance?
When getting a mortgage of $650,000 with a downpayment of $150,000 and an interest rate of 6.932% and a term of 30 years. What is the total price paid for the house?
1189335
Taking out an $35,000 auto loan with a term of 6 years and an interest rate of 7%. What are the first interest payment and principal payment?
Principal - $392.55 Interest - $204.17