Understanding Loans

What does APR stand for?

• Annual Principal Ratio

• Annual Percentage Rate

• Annual Performance Racing

What are the 3 student loans?

• Subsidized Loan

• Mortgage Loan

• Private Loan

• Unsubsidized Loan

What is a fixed rate?

• Interest rate that can change

• Amount of time you have to pay off the loan

• Interest rate that stays the same throughout the term

• Equity

What is Equity?

• The amount of money you borrow for the house

• The house

• The difference of how much the property is worth and how much borrowed.

• The terms on the loan

Who is the Consumer?

• The person lending the borrowed money

• The person borrowing the money

• How much you apply for a credit card

What is a Closed-End Loans?

• Monthly payments towards a loan

• Consumers can continue to use this loan

• One time fixed amount loan

What is Collateral?

Check the two examples:

• Car

• A Financial Asset

• Your grandma

• House

What does "term" mean regarding a mortgage loan?

• The amount of money you borrowed

• The money of months/years of the loan

• Interest rate

• Cosigner

What is a Cash advance loan?

• Cash from your bank

• Money from your parents

• Short term loan, offered through credit card companies

• Long term loan with no interest

What is a cosigner?

• You

• A person that agrees to pay the loan and interest if you (the consumer) default.

• Car

• House