Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Students have asked these similar questions
If you are borrowing money to purchase a car, the loan agreement will likely include:Select an answer from the options below.
A
a collision insurance policyB
payment schedule to pay the principal and interestC
a mortgage on your houseD
payment schedule to pay the interest
First-time homeowners often use FHA loans to finance their home. Go to fha-home-loans.com and find out the current requirements to qualify for an FHA loan. They may differ slightly from that described in the book because the underwriting requirements frequently change. Summarize the types of loans that are currently available. What is the highest loan-to-value ratio that you could obtain?
Which loan you would recommend llyods to take forward and why? Please read the email before you give answer to the question.
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- If you are borrowing money to purchase a car, you should:Select an answer from the options below. A thoroughly read the loan documentsB withhold some items from the disclosureC borrow as much as you canD all of the abovearrow_forwardDiscuss the basics of loan amortization and develop a loan amortization schedulethat you might use when considering an auto loan or home mortgage loan.arrow_forwardIf you were a wise credit card user, under which of the following conditions would you consider using a credit card to finance an expensive purchase? a. If I haven't reached my credit limit and I really want to item b.If I believe my money situation will be better (for example, a better-paying job) in the future than it is now. c.If I have the money to pay for the item in my bank account and plan to immediately pay the balance in full. d. If my card has good rewards on it.arrow_forward
- Pay day loans are short term loans that you take out against future paychecks: The company advances you money against a future paycheck. Either visit a pay day loan company, or look one up online. Be forewarned that many companies do not make their fees obvious, so you might need to do some digging or look at several companies. Explain the general method by which the loan works.arrow_forwardConsumers should comparison shop for credit just as they would for any other consumer good or service. How might a consumer's stage of the financial life cycle, income, net worth, or credit score affect the availability of loan sources and the associated cost of the loans offered? Question content area bottom Part 1 Which of the following statements is correct? (Select best answer below.) A. Typically, stages of the financial life cycle, income, net worth and your credit score move in unison, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources. B. Typically, stages of the financial life cycle, income, and net worth move inversely with credit score, and the cost of the loans tends to be lower in early financial life cycle stages due to a sufficient supply of fund sources. C. Typically, stages of the financial life cycle, income, net worth and your credit score move…arrow_forwardWhat should an investment analyst look into before recommending an investment to clients? How should a commercial loan officer analyze a loan application that includes 3 years' worth of financial statements?arrow_forward
- Answer and explain Which of the following is NOT a reason why financial institutions complete annual reviews on a borrower? A. Annual reviews are best practice due diligence associated with monitoring a borrower’s loans B. Annual reviews allow lenders to assess and meet the changing needs of borrowers C. Annual reviews give borrowers a sense of key loan parameters such as the interest rate, time to maturity, and security D. Annual reviews help lenders to identify early warning signs, to mitigate credit risk, and to meet regulatory requirementsarrow_forwardAfter examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 8 percent compounded or from a bank at 9 percent compounded . Which alternative is more attractive?arrow_forwardThe web page of each bank in Turkey has a financial calculator that will prepare a loan amortization table based on your inputs. If you follow the “Auto Loan Calculator” link, you can calculate the monthly payments of your loan and this link will prepare a payment plan for your loan. Suppose that you want to buy an automobile with a bank loan. Search for different “auto loans” of different banks in Turkey and choose the most appropriate one for you. Give the name of the bank. Determine how much you want to borrow and in how many years you can pay it back with monthly payments by yourself. 1) What is the Annual Percentage Rate (APR) (Nominal rate) on this loan? What is the Effective Annual Rate (EAR)?arrow_forward
- This is a Debt Coverage Ratio or DCR question for part a and a CAP rate question for part b]. Wendy is going to purchase a commercial building and is working with a commercial lender at her local bank. The bank has some loan parameters that Wendy must follow. Understanding the rules will allow her to calculate her cash, income, and payment projections. The bank requires a 1.4 debt coverage ratio for her project. Wendy needs to calculate her net operating income or NOI first. The debt coverage ratio is based on this number. Then she will apply for a 20 year loan at 5% with annual payments. Information on the property includes: Gross rents- $780,000 Vacancy 5% Salaries $85,000 Other Fixed Expenses $125,000 Variable Expenses 20% of gross rents. NOI=_________________ Use the NOI and Debt Coverage requirement to calculate the answer. What is the largest annual payment the bank will allow? If Wendy had to buy the property at a 6% CAP (capitalization) rate, what is the asking price?arrow_forwardWhich of the following is TRUE about Credit Score / FICO Score: Group of answer choices the lower the number, the better chances to obtain credit at a very low cost randomly assigned number; Experian, Equifax, and TransUnion use to monitor Covid-19 tracing typically between 1 and 10; calculated from the highest value assigned by the government typically between 300 and 850; calculated from your credit report to gauge your reliability as a borrowerarrow_forwardIntroduction: what mortgage points are and why people choose to opt-in for it ? what the advantages and disadvantages of using a mortgage point is ? And give an example using numbers present value and future value? Make a report.arrow_forward
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