Common types of lending products and services

​common types of lending products and services

​common types of lending products and services

mortgages, vehicle loans, lines of credit, credit cards, cash advances, debt consolidation

​mortgage

A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you've borrowed plus interest.

​How mortgages work

Individuals and businesses use mortgages to buy real estate without paying the entire purchase price up front. The borrower repays the loan plus interest over a specified number of years until they own the property free and clear. Most traditional mortgages are fully-amortizing. This means that the regular payment amount will stay the same, but different proportions of principal vs. interest will be paid over the life of the loan with each payment. Typical mortgage terms are for 30 or 15 years.

​Mortgages are also known as liens against property or claims on property. If the borrower stops paying the mortgage, the lender can foreclose on the property.

Multiple Choice

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

• Decreases

• Increases

• No change

Multiple Choice

If you are unable to repay your mortgage, what is the most likely result?

• The bank might sell your home to recover its investment

• You might have to go to prison

• The bank might force you to take out an additional loan

• The bank might take all they money and goods you own

The class will be divided into six groups and assigned a lending product/service a. Each group will create either a google slide, quizizz or poster. Each group should include the following information in their presentations:

a.   what it is?

b. Explain the importance lending product that they have been assigned.

b.     how it works

c.    how it benefits and individual

d. the disadvantages of it

​Rubric:

Content                                                                        10

Presenting all the information                10 points

Fair amount of information                    5 points

Not enough information                        3 points

Presentation                                                                 10

Proper introduction of the group            2 points

Making eye contact                               2 points

Correct explanation of concepts             2 points

Group Cohesiveness                              2 points

Interaction with audience                      2 points

Points will be loss if groups are seen talk while other are presenting. 1 point will be subtracted each time.