Interest
Does interest occur during a mortgage?
Yes
If you buy a home for $550,000, with a down payment of $110,000 with a loan term of 20 years. Your monthly payment would be $3,858 what would be the interest rate?
7.069
What’s the benefit of making more than the minimum payment?
Principal will decrease faster saving you interest and time
Which type of loan most often involves long-term repayment over 30 years.
Mortgage Loans
What is the relationship between credit score and interest rate on car payments?
A higher credit score usually means a lower interest rate.
Is a higher percentage interest rate good?
No
If you bought a house for 2 million dollars, with a loan term of 30 years, a down payment of $200,000 with an interest rate of 10%. What is the total amount of interest paid.
$3,886,664
What’s the consequence of refinancing to take a longer time to pay off the loan?
More interest will accumulate
How are mortgage and auto loans similar?
The item purchased is used as collateral
If a down payment can significantly help reduce the long-term costs of a car, why do many people have a hard time making a big one?
It can be difficult to save for a large down payment.
If you have a low credit score would that result in a higher or lower interest rate?
Higher
If you have a credit balance of $6,700 at an interest rate of 20.5%, and you pay $200 a month, how long will it take to pay it off?
51 months
What’s the benefit of refinancing to take a longer time to pay the loan?
The amount of your monthly payment will be lower
What is APR on a credit card?
APR stands for annual percentage rate. APR represents the interest rate a credit card company charges you on any unpaid balance you owe.
Does your credit help you with an auto loan?
Yes
A friend is getting a mortgage for the first time. He used a mortgage calculator and is worried about the total interest owed. He wants to know what the best way to decrease this amount is.
Larger down payment, improve credit score
The average mortgage details in 2024 were about the following. Home cost: $430,000. Down Payment: $25,000, Interest Rate: 7%, 30 Year Fixed. What is the monthly payment?
3,043
How do lenders maximize their profits by loaning money to customers?
Higher interest rates and longer terms
At what minimum age can you open your own credit card account?
At least 18 years old
What is Loan Pre-Approval
This means a lender has reviewed your financial information and offered you a specific loan amount and terms.
The average mortgage details in 2024 were about the following. Home cost: $430,000. Down Payment: $25,000, Interest Rate: 7%, 30 Year Fixed. What is the total interest owed?
565,420
If you have a credit balance of $30,000 at an interest rate of 60.5%, and you pay $300 a month, how long will it take to pay it off?
55 years
What might be the LEAST likely factor a lender will consider if you would qualify to be a loan customer.
What is education level.
When a card holder only pays the minimum balance every month, what will they gain?
Lots of interest and make slow progress toward paying off what is owed on the credit card
What documents do I need to apply for a loan?
Identity, Address, Income and some sort of details about payed bills or other debts.