Credit - Home Buying

Front

A fully amortized payment is split into which two components?

Back

The principal and the interest

Front

Casey has an amortized loan payment of $400, and the interest they owe for that month is $50. By how much does Casey pay down the principal?

Back

$350

Front

As the months progress on an amortized loan, what happens to the payments and principal?

Back

The payments stay the same, but the principal is paid down more quickly.

Front

The details of any loan will include the following three components:

Back

The principal, the interest rate, and the loan term

Front

Having a good credit score, making a larger down payment, and finding a cosigner with good credit are all ways to . . .

Back

Decrease your interest rate

Front

Each of these statements describes a variable rate loan EXCEPT... Typically starts with a lower interest rate than a fixed rate loan, Is riskier to the borrower because the interest rate could increase substantially, Can increase or decrease the interest rate over the course of the loan

Back

Is almost always a better option

Front

Which statement most accurately describes the difference between leasing and owning a vehicle? Options: Leasing is a term used when you purchase a car for the longest term possible; Leasing a car is making monthly payments to use a car for a fixed period of time, but then you return it without owning it; Leasing is a term used when you take the car for an initial test drive; Leasing a car requires a very large down payment, while purchasing a car does not.

Back

Leasing a car is making monthly payments to use a car for a fixed period of time, but then you return it without owning it.

Front

Which of the following is NOT a factor to consider when taking out a loan? Length of the loan, Total Cost of the loan, Impact of the monthly payment on your budget, How much time it takes to receive the loan

Back

How much time it takes to receive the loan

Front

A standardized way of showing you the total cost of borrowing money.

Back

Annual Percentage Rate

Front

What happens to the loan amount when you put down a larger down payment?

Back

Decreases