Loan Review

Interest can be defined as:

• a charge for lending money

• the amount owed for borrowing money

• the amount added into your savings account when opening a bank account

• a charge for convenience of accessing money in your bank

APR stands for

• annual profit rate

• annual percentage rate

• annual participation rate

• annuity profit range

Both an auto loan and a mortgage are examples of a secured debt.

• True

• False

The original amount of money that is borrowed. The amount decreases when you make a payment.

• Annual percentage rate (APR)

• Loan amount or principal

• Down payment

• Loan terms

Define collateral

• Collateral is an asset or group of assets that are linked to a loan

• Collateral is a finance charge

• Collateral is a down payment

• Collateral is a specific type of home loan

Which is the best credit score?

• 500

• 850

• 300

• 700

A loan that is linked to an asset is a(n)

• secured loan

• unsecured loan

• linked loan

• asset loan

A home owner must pay monthly:

• Maintenance

• Interest

• Taxes

• Insurance

A fixed rate means

• The rate will stay the same for 5 years

• The rate will stay the same for 2 years

• The rate will stay the same for the length of the loan

• The rate will stay the same for 1 year

ARM stands for

• Annual reduction mortgage

• Appreciation rate monthly

• Almost ridiculous math

• Adjustable rate mortgage