8-2 Personal Finance

What is a cash deposit toward the purchase price that is paid up front?

• Trade-in

• Down payment

• Refinancing

• Mortgage

What is a contract in which a portion of the renter's monthly payment is applied toward the purchase price of the rented item?

• Debt repayment plan

• Rent-to-own agreement

• Balloon payment

• Preapproved loan

What is a loan for which a maximum amount is established and approved in advance?

• Refinancing

• Preapproved loan

• Trade-in

• Mortgage

What is paying off an existing loan with a new loan that usually has better terms?

• Debt repayment plan

• Prepayment penalty

• Rent-to-own agreement

• Refinancing

What is a loan used to purchase real estate?

• Preapproved loan

• Balloon payment

• Mortgage

• Trade-in

What is a strategy for paying off debt in a way that reduces the total interest paid?

• Prepayment penalty

• Preapproved loan

• Refinancing

• Debt repayment plan

What is a large lump sum payment that must be paid at a set time?

• Mortgage

• Rent-to-own agreement

• Balloon payment

• Trade-in

What is a fee charged if you repay a loan before the agreed-upon time?

• Preapproved loan

• Down payment

• Prepayment penalty

• Refinancing

What is something of value applied toward the down payment of a new vehicle purchase?

• Balloon payment

• Mortgage

• Trade-in

• Preapproved loan