Exam 9: Personal Loans

Frank purchased his home in 1997 for $130,000.He added an addition costing $35,000.The current tax assessed value is $80,000 while the current market value is $185,000.If Frank's current mortgage balance is $95,000,his equity in his home is

All of the following are true of a home equity loan except it

If you are considering trading in a used car when you purchase your new one,it is best to

When borrowing money from a family member or a friend,the loan agreement should be in writing and signed by all parties to avoid any possible misinterpretations.

The Truth-in-Lending Act (1969)requires which of the following?

You have a home with a market value of $200,000.Your total equity in the home is $40,000.The maximum home equity loan available if the bank will loan 80% based on equity invested is

If you always drive cars many miles and keep them for 10 years,it would probably be best to

When applying for a personal loan,you will be required to fill out a loan application but you will seldom need a personal balance sheet or a personal cash flow statement.

You obtain a loan of $3,000 based on simple interest with an annual interest rate of 12%.At the end of the first month,the interest owed on $3,000 is

Because the market value of homes may decline,lenders do not like to lend the full amount of the equity when extending a home equity loan.

It is important to buy a car that is not over your budget and to finance the car properly.The more money needed to cover the car payments,the less you can add to your savings or other investments.

Use the following two columns of items to answer the matching questions below: -maturity

The method of determining the monthly interest amount by adding the interest and loan principal together and dividing by the number of payments is the

The personal loan process with a financial institution requires all of the following except

Shopping for automobile insurance should begin immediately after you close the deal on the car.

The advantage to financing a car for a long period of time (of up to seven years)is

Since all student loans are not issued at the same interest rate over the course of a student's education year,once the student graduates and begins working and is starting to pay back the loans they should

All of the following are true regarding a cosigner on an account except

A loan provided to finance the expenses of a person pursuing a college degree is called a(n)________.

The document that specifies the term of the loan as agreed to by the borrower and lender is called the