Which of the following terms describes a loan that requires payments that do not fully pay off the loan balance by the final payment?
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Which of the following terms describes a loan that requires payments that do not fully pay off the loan balance by the final payment?
In a loan that requires periodic payments that do not fully amortize the loan balance by the final payment, what term BEST describes the final payment? The answer is balloon. When the term of the loan is over and the payments made have not paid off the debt, the last payment is a balloon payment.
What kind of a loan would be fully paid out over the life of the loan?
Fully amortized loans
What kind of a loan would be fully paid out over the life of the loan quizlet?
package mortgage. What kind of a loan would be fully paid out over the life of the loan? A Budget Mortgage is a loan, which has a payment composed of the following? balloon or a partially amortized loan.
What happens when your loan term is up?
This process of paying down debt is called amortization. A loan’s term affects your monthly payment and your total interest costs. But a longer term also results in more interest charges over the life of that loan. You effectively pay more for whatever you’re buying when you pay more interest.
Which type of interest does not change over the life of a loan?
A fixed interest rate is a rate that will not change for the entire term of a loan. For example, a 30-year fixed-rate mortgage keeps the same interest rate for the whole 30-year period.
What are the steps in the loan process?
There are six distinct phases of the mortgage loan process: pre-approval, house shopping; mortgage application; loan processing; underwriting and closing. Here’s what you need to know about each step.
What are four actions you can take to help build a good credit rating?
Using credit responsibly is a must if you to build and maintain a good credit history.
- Only Borrow What You Can Afford.
- Use Only a Small Amount of the Credit You Have Available.
- Start With Only One Credit Card.
- Pay Your Credit Card Balance in Full.
- Make All Your Payments on Time.
- If You Carry a Balance, Do It the Right Way.
What payments help build credit?
Auto, mortgage, personal and student loans are all types of installment credit. That means the loan you might borrow to buy a car or pay for your education has the added benefit of helping you build credit, assuming you make all your payments on time.
What are 5 ways to improve your credit score?
There are steps you can take right now to begin ​raising your credit score.
- Get a Copy of Your Credit Reports.
- Dispute Credit Report Errors.
- Avoid New Credit Card Purchases.
- Pay off Past-Due Balances.
- Avoid New Credit Card Applications.
- Leave Accounts Open.
- Contact Your Creditors.
- Pay off Debt.
