Question

5. General factors to consider when shopping for a consumer loan Aa Aa Factors to Consider before Taking Out a Consumer Loan You've made the decision to purchase an item that is affordable only with a loan. When shopping for a loan, there many aspects of the loans that you should examine. which of the following about a specific loan proposal before accepting a lender's offer? Select all that apply are questions should be asked and answered where is the lending institution located? Is the loan collateralized? What is the loan's APR? Do you need, or only want, the item being purchased? □ If I accept the loan, what is my new debt safety ratio? You're shopping for a big loan, but you have misgivings about John, the loan officer, at an institution you just visited. What are some reasons that may have you uneasy about accepting a loan there? Check all that apply. John spent most of the time emphasizing benefits of loans with balloon payments and interest-only payments. John told you that the interest rate is the only important fee to worry about and that discussing the APR is an unnecessary complication John said that his loan was most likely the only one you'd be able to obtain. D When you filled out the loan application, John told you to leave out the smaller amounts you owe to department stores. John pointed out that the APR and interest rate were different. When you filled out the application, John said if you werent sure about something on it, you could take the application home and complete it when you had the correct answers. John gave you a range of terms and said they'll be worked out at closing. John discussed options for taking out a smaller loan, such as selling current assets to raise a bigger down payment. what are characteristics of your reasons for feeling uneasy about John the loan officer? Check all that apply The way the loan officer omitted pertinent information

Answer 1

1.Is the loan collateralized

2.what is loan APR

3.what is safety ratio

are few questions which should be asked.

John told that the interest rate is the only important fee to worry about and discussing APR is unnecessary complications

When you filled out the application form john told to leave smaller amounts you owe to departmental stores.

John gave you range of terms and conditions and they will be worked out at closings.

were the few things which made uneasy to take loans from particular institution.

The reasons for feeling uneasy about John are

The way the loan officer omitted the information

The officers embellishment of the facts.

How often the rate change and what is the maximum rate can be are the few questions can be asked for taking variable rate loan.

The phrase that describe the characteristics and solutions of the phenomenon are

Identify your goals and framework for evaluations and trade-off for making choice of the loan.

Keep it simple and select less expensive alternative.