Basic types of Loans/Auto Loans

What are the 5 basic types of loans?

• Automobile

• Payday

• Mortgage

• Federal/Student

• Small Business

What does principle stand for?

• % the lender charges you for borrowing the money.

• the amount of money being borrowed.

• time given to pay back the loan.

• Assets you put up against the loan as a safeguard for the lender against defaulted payments.

Interest Rate?

• % the lender charges you for borrowing the money.

• the amount of money being borrowed.

• time given to pay back the loan.

• Assets you put up against the loan as a safeguard for the lender against defaulted payments.

Loan Term?

• % the lender charges you for borrowing the money.

• the amount of money being borrowed.

• time given to pay back the loan.

• Assets you put up against the loan as a safeguard for the lender against defaulted payments.

What is Collateral?

• % the lender charges you for borrowing the money.

• the amount of money being borrowed.

• time given to pay back the loan.

• Assets you put up against the loan as a safeguard for the lender against defaulted payments.

This type of loan is Not backed by collateral. Higher interest rates. More risky.

• unsecured loan

• secured loan

• na

• na

This type of loan is Protected by collateral. Lower interest rates. Less risky.

• unsecured loan

• secured loan

• na

• na

Fixed Rate is?

• if you default on your payments your co-signer is responsible for the payments.

• not being able to make a payment or payments.

• Stays the same throughout the duration of the loan term. Predictable with higher interest rates.

• Can fluctuate depending on the index. Unpredictable with lower interest rates.

Variable Rate is?

• if you default on your payments your co-signer is responsible for the payments.

• not being able to make a payment or payments.

• Stays the same throughout the duration of the loan term. Predictable with higher interest rates.

• Can fluctuate depending on the index. Unpredictable with lower interest rates.

What is a Co-Signer?

• if you default on your payments your co-signer is responsible for the payments.

• not being able to make a payment or payments.

• Stays the same throughout the duration of the loan term. Predictable with higher interest rates.

• Can fluctuate depending on the index. Unpredictable with lower interest rates.