Study Set No . 19 Personal finance managing ( Business Finance)

Denise buys a $100,000 condo using a $20,000 down payment on a 30-year fixed-rate loan. After 5 years of payments, she's made approximately $24,000 in payments and still owes approximately $75,000. How much equity does Denise have in her house?

$25,000 because she still owes $75,000.

Positive way to build credit while you're in high school or college.

-Become an authorized user on your parent's credit card -Have your parents co-sign for a credit card of your own, and use it responsibly -Pay your rent, utilities, and cell phone bill on time

Each item that plays a role in calculating your credit score.

-Payment history -Debt-to-credit ratio -Length of your credit history -What types of credit you have -Number of times you've opened new credit accounts or had new requests for credit

Carson is a college freshman and wants to build his credit score so that, when he graduates at age 22, it's easier for him to rent an apartment and take out a car loan. Rank these strategie

1 Have his mom co-sign for a credit card this year, and then Carson pays all of bills on-time and in full every month. 2 After proving he can be responsible freshman and sophomore years, become an authorized user on his mom's credit card during junior year. 3 Wait until he turns 21 at the start of senior year and open his own credit card then, which he'll pay off every month. 4 Use his debit card responsibly all four years, but every time the cashier asks, "Debit or credit?" choose "credit" so it goes toward his score.

Put these steps for using the High Rate method in order from first to last.

1 Rank your debts from largest interest rate to smallest interest rate 2 Make your minimum monthly payment to each debt 3 Contribute any extra funds available to the debt with the highest rate 4 Continue until highest rate debt is completely paid off 5 Begin contributing extra funds to the NEXT highest rate debt 6 Repeat all steps until all debt is eliminated

If you take out an auto loan and then realize later that you cannot afford it, which is NOT a viable option for dealing with this problem.

Cease making your payments until you have more money saved up; it's unlikely they'll repossess your car, and you get to keep driving it.

Which of these steps is NOT helpful in disputing inaccurate entries on your credit report?

Contact the bank where you have your checking account

What is the name given to the numerical rating that you receive based on your credit habits?

Credit score

True or False: Your student loan servicer will automatically contact you once your grace period is over. Until they contact you, you don't need to worry about your loan repayment.

False

True or False? Once you're delinquent on making a loan payment, it doesn't matter how soon you pay it, because the damage is already done, and the credit report just shows that it was late.

False

True or false: If Fabrice has a $1000 balance on his credit card this month and an APR of 20%, his interest charge for the month will be $200.

False

True or False: A credit union or bank branch is always the most desirable source for personal loans because they offer the lowest rates and will lend to those even with low credit scores.

False.

Which of these descriptions best describes the Federal Trade Commission and the Consumer Financial Protection Board?

Government agencies dedicated to educating and protecting American consumers in the areas of credit, debt, frauds, and scams, among other personal finance issues

What is the most reliable way to improve your credit score?

Pay ALL your bills on time

Which statement below accurately describes how peer-to-peer lending works?

Peer-to-peer businesses link investors to personal loan requests. The interest paid by the borrower provides the lender's investment income.

Which of the following is NOT an advantage of using a personal loan instead of a credit card?

Personal loans offer free extended warrantees on large purchases you make using the loan funds.

If you do not contact your loan servicer to select another option, your Federal student loans will default to _______ repayment, which has a term of _______ years.

Standard, 10

Which of these is NOT a good strategy to use when discussing auto financing with a dealership?

Tell the dealer the maximum payment you can afford, and refuse to pay more than that.

Renaldo is reviewing his credit report for the first time. Select each item he should NOT expect to see on a credit report.

The balance of his savings account, The balance of his checking account, His credit score from TransUnion, Experian, and Equinox, A car loan he paid off 10 years ago

basic relationship between savers and borrowers at a traditional bank?

The bank pays interest to the savers and gives loans at a HIGHER interest rate, so that the bank makes money

Mia doesn't have any credit history, so she's going to open a secured credit card to begin building her credit. She puts down an $800 security deposit. What feature of an unsecured credit card is Mia's security deposit most like?

The credit limit

Which of these represents a positive reason to borrow from your own 401(k) rather than a bank?

The interest you are paying on the loan goes back into your own account, rather than to a bank.

Which of these is the name of a credit reporting bureau in the United States?

Transunion, Equifax, Experian

True or False. When using a credit card, you are really getting a short-term loan to allow you to purchase an item now which you can pay for later.

True

True or False: Leases typically have lower monthly payments than you'd pay to purchase the same car using a loan.

True

If you stop making your debt payments, which of the following unpaid debts WILL show up on your credit report?

Unpaid Federal student loans Unpaid private student loans Late credit card payments Late or missed auto loan payments A bill or bills sent to a collections agency Unpaid mortgage

Susie is considering a graduated repayment plan, which means ________

her monthly payments will start lower and end higher.

Fiona graduated from college last month with $34,000 in student loans. She also has $2200 in credit card debt. She owns a car that she bought 2 years ago for $2700 in cash that is now worth $2100. She has $3500 in a savings account that she and her parents both contributed to, in case she ever needed money in an emergency. What is Fiona's net worth?

$-30,600

Which statement best distinguishes the difference between a secured credit card and a prepaid card?

A secured card requires a deposit, but the user still pays monthly; a prepaid card requires a deposit onto the card, which the user then spends from.

You've ordered your credit report, and your mom said you should review it for errors. What should you be looking for? (Mark all that apply).

Accounts you have closed that still say "open", Credit cards or loans that you did not open or do not recognize, Delinquent payments, when you have paid all your bills on-time, Referrals to collection agencies that you are not aware of

Which of the following does NOT represent an advantage of leasing a car?

After the lease ends, you sell your car back to the dealer and get most of your payments back in equity.

You're about to open a new credit card. Which best describes the relationship between your credit score and the interest rate you'll likely be offered by the credit card company?

If your credit score is high, your interest rate will be low

Why do potential lenders frequently request to see your credit report before allowing you to borrow money?

It allows them to assess how much current debt you have and how responsible you've been in making payments on existing debt

Joyce sees a credit card offer, advertising 0% APR. Which of the following is least likely true?

0% offer lasts indefinitely, as long as you always make at least your minimum monthly payment.

The following high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Rank them in order from who will pay the LEAST to the MOST for their purchases.

1 Jasmine, who had the $1500 saved previously and pays off the whole balance once her bill comes 2 Stephan, who pays the first $1000 using graduation money and then pays $250 per month until the debt is $0 3 Robert, who makes $300 payments per month until the debt is $0 4 Nelson, who makes the minimum monthly payment each month until the debt is $0 5 Joan, who can't afford to make any payments and plans to put off the debt until she gets a summer job next year

Mustapha needs a $3000 loan to buy a used car so he can take a job not accessible by public transportation. Rank these repayment options from LEAST total cost to MOST total cost.

1 Make a $1500 down payment, then pay $500 per month from his paychecks until the debt is paid off. 2 Make a $500 down payment, then pay $500 per month from his paychecks until the debt is paid off. 3 Make a $500 down payment, then pay the $150 minimum monthly payments required until the debt is paid off. 4 Don't make a down payment, but pay the $150 minimum monthly payments required until the debt is paid off.

Rank these negative entries on a credit report from LEAST severe to MOST severe.

1 A late or missed payment on your credit card 2 Four consecutive months of late payment on your car loan 3 A charge-off by your credit card company 4 Bankrutpcy

Real estate prices in San Francisco are sky high, and each of the following people are trying to buy an $800,000 condo. Rank the prospective buyers based on the total amount they're likely pay in interest from LOWEST amount to HIGHEST amount. If you don't think they'll even qualify for a mortgage, rank them last.

1 Carlos, who is going to pay the full condo price in cash 2 Luke, who has a credit score of 795 and has a down payment of $200,000 3 Sarah, who has a credit score of 740 and has a down payment of $175,000 4 Ellen, who has a credit score of 645 and has a down payment of $220,000 5 Phil, who has a completely blank credit

Carla's financial aid package from Magna University includes a grant as well as unsubsidized and subsidized Federal student loans. Her parents said they're also willing to cosign on her taking out a private student loan, if needed. Carla goes to her guidance counselor for help deciding which of these funding options to use first. Order Carla's options from MOST desirable to LEAST desirable option.

1 Grant 2 Subsidized Federal student loan 3 Unsubsidized Federal student loan 4 Private loan

Put these steps for using the Debt Snowball method in order from first to last.

1 Rank your debts from smallest debt to largest debt 2 Make your minimum monthly payment to each debt 3 Contribute any extra funds available to the smallest debt 4 Continue until the smallest debt is completely paid off 5 Begin contributing extra funds to the NEXT smallest debt 6 Repeat all steps until all debt is eliminated

Newton gets bored easily and likes to relocate to a new neighborhood or even a new city every 2-5 years. Rank the following housing options in order of MOST to LEAST in the categories of flexibility and good use of his financial resources.

1 Rent a home or apartment 2 Buy a home using an adjustable-rate mortgage 3 Buy a home using a fixed rate mortgage

As of March 2016, American households held a total of $12.25 trillion in debt. Rank their sources of debt from HIGHEST amount to LOWEST amount.

1. Housing debt 2. Student loans 3. Auto loans 4. Credit card debt

Kurt is a college student, living on campus, who wants to open a credit card in order to start building his credit history. He plans to charge no more than $100 per month, and he will pay it off every month using his part-time job income. Which card offer makes the MOST sense for Kurt?

A card offering 2% cash back with no annual fee.

Which of these does NOT represent a type of credit?

A certificate of deposit (CD)

Which of the following might be a likely Adjustable Rate Mortgage offer that a new home buyer could receive from their bank?

A fixed rate of 4.3% for a term of 5 years, which then adjusts yearly for the next 25 years

Which statement about Small Business Association (SBA) loans is accurate?

Because the Federal government is involved in SBA loans, they come with extra paperwork and can take longer to process and fully fund.

Which of the following represent secured debt? You may select more than one.

Home equity line of credit. & Mortgage.

Which items in this list represent government agencies who can offer education or support if you are struggling with debt, feel your creditors are treating you unfairly, or have been victim of a scam.

Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC)

Omar is about to start his final semester of college, and he doesn't have enough money saved to afford the $750 he needs in books. He's 21, so he's going to open his own credit card to pay for the books, and then not use it again. His plan is to pay $100 per month toward his bill, until it's paid off. Rank the following cards in order from BEST offer for Omar to WORST offer for Omar.

Correct Answer 1 0% APR for the first 6 months, then an APR of 14.99%, with no annual fee. 2 0% APR for the first 6 months, then an APR of 20.99%, with no annual fee. 3 Free balance transfers, APR of 13.99% with no annual fee. 4 Free balance transfers, APR of 12.99% with $150 annual fee.

Kelsey wants to open a credit card and has narrowed her choice down to three possible options. Mark whether each is a factor she should consider when deciding.

Correct Answer Yes No ( A) Which card does her best friend have? radio_button_checked radio_button_unchecked (B) What is each card's APR for cash advances? C) Is there an annual fee with each card? (D) What rewards or perks does she receive with the card? (E) Is each card FDIC insured?

Ramon and Stephen are each considering taking out a $1200 loan so they can buy dirt bikes to enjoy on the weekend. Ramon's bank is offering him a 4.3% interest rate, while Stephen's is offering him a 2.4% interest rate. Mark whether each statement is accurate.

Correct Answer Yes No (A) If each loan has a term of 3 years, Ramon's monthly payments will be higher. (B) If they both make $300 payments a month, Ramon will pay off his loan faster. (C) Both men would likely get a better interest rate if they used a credit card, rather than a personal loan, to make their purchases. (D) If they follow the loan payment schedule, both men will end up paying more than $1200 for their dirt bike. (E) If Ramon applies to Stephen's bank, instead, for his loan, he's guaranteed to get the same 2.4% interest rate that Stephen's been offered.

Fill in the blank with INTEREST, DOWN PAYMENT, or TERM. You can typically reduce your loan costs by making a large _______. The _______ rate refers to how much the bank is going to charge, yearly, for your loan. A short _______ will likely mean higher monthly payments but lower overall costs.

Down Payment, Interest, Term

Edison has a credit score of 720, while Francisco has a credit score of 685. Which statements are FALSE?

Edison may receive a higher APR on a credit card he tries to open, while Francisco's APR will likely be lower.

The three credit reporting agencies (bureaus) are:

Equifax, TransUnion, and Experian

TRUE OR FALSE: Most people would consider a fixed-rate mortgage to be riskier than an adjustable-rate mortgage.

False

TRUE or FALSE: With a typical fixed-rate mortgage amortization table, your house payments are higher at the beginning of the loan because you owe more in interest then. As you pay down the interest, your payment size decreases

False

True or False: If a credit card advertises 1% cashback on all purchases, you will receive 1% of your transaction back, in cash, at the store.

False

True or False: If your original creditor (ex: credit card company) sells your debt to a collection agency, you no longer have to pay that debt -- it's been forgiven.

False

True or False: To avoid appearing biased, a bank or other lender must offer the same interest rate to all of its borrowers

False

True or False: If you don't anticipate needing another loan any time soon, being late with your unsecured loan payments doesn't have any real consequence because there's no tangible item to repossess.

False:(

Which of the following statements best explains the purpose of a Schumer box?

Gives the borrower a clear description of the APR, fees, and other major conditions of their credit card

Which of the following is NOT a potential danger of taking advantage of a "0% APR for 1 year" deal?

Having such a low rate for so long might decrease your credit score.

Complete each sentence with the word HIGHER or LOWER. If you have a low credit score, your mortgage interest rate will be _______. If you have a high credit score, your mortgage interest rate will be _______.

Higher, Lower

Chelsie, who typically bikes, is buying her first car this winter, before the cold weather hits. Which friend's advice is most useful about financing?

Kayla: You need to price out all options for financing your car. It's too much money to settle for a bad deal.

Yun is trying to remember the difference between subsidized and unsubsidized student loans. He asks his friends at lunch, and they give the following answers. Which friend is right?

Liz: On subsidized loans, the government pays the interest while you're in college, and then you pay the interest once you're no longer enrolled.

Use the words HIGHER or LOWER to fill in each blank: Laura has a substantially higher credit score than her sister, Caroline. For a similar car loan, Laura's APR will likely be _______, which will make her monthly payment _______, and the total amount she pays on her loan _______.

Lower, Lower, Lower

Which of these June 2016 college grads is likely to have the best credit score?

Lucy, who graduates with $10,000 in student debt and has a credit card she's paid on-time, in full each month, for the last 5 years -- since her senior year in high school

If you are having trouble figuring out how to repay all of your debts, which of these outside supports should you try first?

Meet with a certified credit counselor

Which will most likely cause your credit score to drop the most?

Missing a payment

Which type of debt typically represents the largest balance owed for most American households?

Mortgage

If Toni is trying to calculate her net worth, select all of the items that would go into her liabilities list.

Mortgage, Student loan debt, Credit card debt, and Home equity line of credit

Which description best fits what is meant when someone talks about their credit card APR?

The percent the credit card company charges you for the benefit of receiving a temporary loan from them

Which of the following are components of your credit score?

The type of credit you have, Your payment history on previous & current debt, Your credit utilization rate, The length of your credit history, Whether you've applied for new credit recently

True or False: Over 90% of Americans aged 18 and older have a credit file and credit report.

True

True or False? Applying for multiple loans or credit cards can cause a drop in your credit score even if you never take out the loan or add a credit card.

True

Complete each sentence with HIGH or LOW. For a student loan, you want the interest rate to be _______. For a credit card, you want the interest rate to be _______. For a savings account, you want the interest rate to be _______.

low, low, high

Cameron loves water colors, and a local artist is offering a 6 week course, starting next month, in the fundamentals of painting in the style. If he signs up before Friday, the class is only $299 instead of $349. It's such a good deal, he's tempted to pay for the course using his credit card now and pay off the bill whenever he has the money. Which of the following is NOT a useful question to ask himself before deciding whether to charge the course today?

Will I have to pay for this course eventually, or will the credit card company cover the cost?

Mark whether each statement about auto leases is accurate.

Yes No (A) A typical term on an auto lease is 10 years. (B) Dealerships conduct credit checks for auto loans but not for auto leases. (C) Leases can be a bad deal for those who drive a lot of miles, as there's typically a per mile charge on going over your maximum annual mileage. (D) If your leased car becomes damaged or vandalised, you are typically obligated to fix that damage under terms of your lease. (E) At the end of your lease, you officially own your vehicle.

Bonnie is trying to decide between standard repayment and income-based repayment for her $30,000 student loans. Her job pays $29,500 per year. Mark whether each statement is accurate.

Yes No (A) Bonnie makes too much money to qualify for income-based repayment. (B) Bonnie will likely pay less, total, if she goes with the standard repayment. (C) It's best for Bonnie to choose standard repayment, even if that means she's delinquent on some of her monthly payments. (D) Bonnie's monthly payments on the income-based plan will likely be lower than on the standard repayment plan. (E) If Bonnie has extra money one month, she can pay more than her monthly payment with either of the two repayment options.

Mark whether each of these directly affects the total amount of interest you'll pay on your home mortgage.

Yes No (A) How many other homes in your neighborhood are also for sale (B) The size of your down payment (C) The term length of your mortgage (D) Your credit score (E) The median cost of homes in your neighborhood

If you find yourself with a lot of debt, mark whether each of these is a RESPONSIBLE strategy for paying off your debts.

Yes No (A) Pay your secured debt first so you don't lose your house or car, then worry about your unsecured debt later on. (B) Cut out all unnecessary spending from your budget, and put all the extra cash toward paying down debt. (C) Seek advice from a certified, nonprofit credit counselor to help organize your finance and develop a plan. (D) Pick up another job, more hours at your current job, or ask for a raise; all extra income goes toward paying down debt (E) File for bankruptcy so you can start anew with a clean slate.

Mark whether each of the following is a reason you can be legally DENIED credit under the Equal Credit Opportunity Act.

Yes No (A) Because you don't have any credit history in your file (B) Because part or all of your income comes from public assistance or Social Security payments (C) Because you have a low credit score (D) Because you were not born in the United States (E) Because you have filed for bankruptcy in the past 5 years

Which of these actions are debt collectors legally allowed to do?

Yes No (A) Call your home phone AND your cell phone. (B) Have you arrested due to unpaid debts (C) Lie about the consequences in order to convince you to pay (D) Sue you (E) Tell your relatives or neighbors about your unpaid debt

Mark whether each of the following will result in your having a LOWER monthly car payment.

Yes No (A) Increasing the size of your down payment (B) Decreasing the number of months in your term (C) Qualifying for a lower APR (D) Applying the trade-in value of your old car toward your new car purchase

Janelle sees two different financing options, for the same brand new car, advertised online. She uses a loan calculator and finds that option 1 would give her monthly payments of $435/mo. Option 2 would give her monthly payments of $625/mo. Mark whether each of the following could explain the difference in price.

Yes No (A) Option 1 has a longer lease term, so she'll be in debt for longer. (B) Option 2 is using a higher APR, so she'll pay less interest overall. (C) Option 1 requires a larger down payment, so she'll pay less for her car overall. (D) Option 2 has a shorter lease term, so she'll pay less interest overall. (E) Option 1 is eligible only for those with outstanding credit, which Janelle may or may not be qualified for.

Mark whether a low APR is an important quality for each individual's intended credit card usage.

Yes No (A) Rupa is is charging many of her day-to-day purchases, and paying her monthly minimum, until she can find a job. (B) Christopher is transfering balances from his 3 other cards in order to simplify his payments each month. (C) Carlos is opening the card to receive the 50,000 bonus points for signing up and then using/paying off the card only once. (D) Maggie is buying a new laptop, 2 weeks worth of professional attire and shoes, and a new haircut so she can start her first job out of college. (E) Abdul is building his credit by buying one thing on credit every month and paying his bill in full.

Mark whether each of the following is a valid reason a student might take out private student loans.

Yes No (A) Student has already received all possible Federal loans for the year but still has a funding gap (B) Private student loans will build student's credit score, while Federal student loans do not (C) Private student loans typically have more flexible repayment plans than Federal loans (D) Student's parents are going to take out the loan, and the Federal government doesn't offer loans to parents

Mark whether each person can request a copy of your credit report under the Fair Credit Reporting Act.

Yes No (A) You! (B) A potential employer to whom you've given written permission (C) A potential employer who does NOT have written permission (D) A current employer any time your job performance is in question (E) A credit card company you have asked for a credit extension (F) A landlord when you apply to rent in their building (G) Anyone -- credit reports are public record

If you are applying for a personal loan from a bank or online lending site, mark whether each of the following is information you should provide, if asked.

Yes No (A) Your home address radio_button_checked radio_button_unchecked (B) Your current employer (C) How much money you make (D) Whether you are a US citizen (E) Your race or ethnicity

Mark whether each of the following is a possible outcome of taking a 10/1 ARM with a term of 30 years.

Yes No (A) Your interest rate for the first 10 years is LOWER than it would have been with a comparable fixed-rate mortgage. (B) Your interest rate fluctuates for the first 10 years but then stabilizes for the remaining 20. (C) After the initial period of 10 years, your interest rate is LOWER in year 11. (D) You end up paying MORE with the ARM than you would have with a comparable fixed-rate mortgage. (E) After the initial period of 10 years, your interest rate is HIGHER in year 11.

Mark whether each response is true to complete this statement: In general, if you choose a repayment plan with a longer term, _____________

Yes No (A) your monthly payments will be lower. (B) the total interest you pay will be higher. (C) you will pay off your loan more quickly. (D) you will decrease the total cost of your loan. (E) you will damage your credit score.

Mark whether each statement about payday loans is true.

Yes No (A) The average payday loan amount in the US is $1000. (B) The typical term for a payday loan is 5 years. (C) Payday loans do not require a credit check, so they are available to borrowers even with bad credit. (D) Payday lenders make their money by lending small amounts of money but charging large fees in comparison to other personal loan interest rates. (E) Payday loans are easy to repay because the lender takes a small portion of every paycheck until the loan is paid off.

Spencer is a recent graduate who finds a dream car that costs $45,000. Even better, there's a 0% APR for 36 months offer from the dealership, so he figures he'll rush in this weekend to buy it! Mark whether each of the following is a "catch" Spencer should be aware of.

Yes No (A) The 0% offer is most likely for those with OUTSTANDING credit. As a 22-year old, he may not qualify. (B) If the dealership is offering 0% for 36 months, his bank would probably give him 0% for 72 months -- twice as good! (C) After the initial 36 months of 0% interest, Spencer's interest rate is likely to surge to 20% or higher! (D) The 36-month term of his lease will mean Spencer owes over $1000 per month in car payment alone with this deal! (E) Any dealership offering 0% APR is running a scam! Spencer will likely be the vicitm of identity theft or fraud if he takes the deal

Which of the following represent benefits of an installment loan?

Yes No (A) Allow you to make one large purchase you need, even if you don't have all the money for it up-front. (B) Frequently have a fixed interest rate, so you know exactly how much you'll owe each month. (C) Do not require a credit check, so they're easy to obtain. (D) Allow you to make many small purchases, as you need them, as long as you're under your credit limit. (E) Can be used to pay your college tuition bill.

Mark whether each statement accurately describes a possible benefit of shopping using a credit card.

Yes No (A) If you do not have the money to pay your monthly bill, you can wait a month or two without a problem. (B) You may earn cash back, travel rewards, or other perks for each dollar you spend. (C) You can buy things you need now but don't have money to pay for entirely yet. (D) It pulls money directly from your bank account, which prevents you from overspending. (E) Most stores will give you a discount if you pay with credit instead of cash or debit.

Pretend you take out a 30-year fixed rate mortgage for $250,000. Mark whether each of these statements will be true.

Yes No (A) The amount of payment you owe every month will be the same. (B) The amount of interest you pay every month will be the same. (C) The amount of principal you pay every month will be the same. (D) If you make your minimum monthly payments, your debt will be paid off in 30 years. (E) You are not allowed to pay more than the amount due every month.

Which of the following is NOT a likely outcome of consolidating your Federal student loans?

You may become eligible for more special offers, such as interest-free deferment or loan cancellation.

You made some mistakes while in college, ran up some large credit card bills, and missed a few payments along the way. Your credit score of 600 is pretty lousy when you graduate, but you get a job paying a salary of $50,000 and figure your credit problems are behind you. Which of the following statements below is TRUE?

You will likely pay a higher rate of interest or even be denied if you apply for a new car loan upon graduation

Which statement best describes the rules on receiving your credit report under the Fair Credit Reporting Act?

You're entitled to one free credit report from each of Transunion, Equifax, and Experian each year

Your credit card has a limit of $10,000, and you carry a balance of $2500. Which best describes your credit utilization rate?

Your rate is 25%, and that's within a safe range

Suppose you have a typical 30-year fixed mortgage on a home that costs $200,000; you've got a good credit score. While every mortgage is different, which statement below BEST describes the amount of interest you'll likely pay?

Your total interest will be approximately $150,000.

Which of the following represents a "rule of thumb" for how much student loan debt you should be willing to incur to pay for college?

Your total student loan debt should be no more than the starting salary in your anticipated career

Select all of the answers that correctly complete the sentence "A home equity loan..."

can fund a renovation, a new car, or college tuition, typically has a fixed interest rate, typically has a fixed term for repayment, must be paid in addition to your mortgage if you still owe money on your house.