 Federal student loans usually have the lowest interest rate  Have to start making payments 6 months after graduation  Making payments while in school.

Slides:

Advertisements

Similar presentations

Credit. 1. WRITE YOUR OWN DEFINITION FOR CREDIT ON YOUR PAPER. SENTENCES: 1.I RECEIVED CREDIT FOR TURNING IN THE ASSIGNMENT. 2.WHEN THE PIZZA DUDE MESSED.

Advertisements

Credit. Borrowers & Lenders Find Your Match! Whos Your Middle-Man???

Debt is when you owe someone money. The someone can be a bank (like a house loanalso known as a mortgage, or a car loan), OR the someone can be a credit.

Understanding Private Loans Default Prevention. Agenda  Essential loan language  Variable rate language ♦ Types of indexes  Language for all types.

Your Money and and Your Math Chapter Credit Cards and Consumer Credit

Introduction to Business and Marketing Chapter 26.2.

What is credit?. VOCAB TO KNOW! Credit : trust given to another person for future payment of a loan, credit card balance, etc Creditor : A person or company.

Sponsored by Welcome COUNTRY Financial® proudly provides financial literacy education to your classroom. Financial literacy is important, no matter how.

Mortgageguidelines.net Mortgage Guide. mortgageguidelines.net What is a mortgage? A mortgage refers to a loan that you take out to finance a property.

FAFSA Free Application for Federal Student Aid The main form students use to apply for Federal education grants and loans.

Consumer Banking Dollars and Sense. Interest Rates – Rules of Commercial Banks – Interest rates charged for loans higher than Savings Banks and interest.

Refinancing WHPE. Goals of Chapter To illustrate the hidden costs that interest adds to a mortgage payment. To explain how refinancing can save homeowners.

CREDIT NOTES Credit is buy now pay later. The opportunity Cost is future income! Credit can be a great tool and can be necessary but can lead to financial.

HOW CREDIT CARDS WORK What you need to know about credit cards- including what credit cards companies can and can’t do, and what information they have.

Going into Debt. Americans and Credit What is credit? What is credit? Receiving funds directly or indirectly, to buy goods and services w/ promise to.

1. What is Credit and What is Debt? 2. Using Credit: The Rewards & Risks 3. Four Types of Debt 4. The Cost of Using Credit 5. Running the Numbers.

Section 1: Use of Credit.  Credit: Receiving money with the promise to pay in the future ◦ Principal: The Original amount of the loan ◦ Interest: Amount.

Loans - Mortgages. Amortization Table Just like Credit cards Month Beginning BalancePaymentInterestPrincipalEnd Balance.

3 types of mortgage loans for homebuyers -Fixed Rate Mortgage -fixed interest rate -front loaded interest -10, 15, 20, 30 -Adjustable Rate Mortgage -Rate.

Loans and Interest Financial Capability. Loans and Interest Follow up questions for “Borrow Cards” game Follow up questions for “Borrow Cards” game What.

Chapter 8 Preserving Your Credit. Slide 2 Buying a Car A car loan is usually an installment loan with monthly payments. 8-2 Long-Term Debt Repayment Make.

Discussion Question CN (1) Web Investment Tracking Dow Jones Industrial Average Company Research Financial Web Sites Other Averages Online Brokers World.

Lesson 8-2 Long-Term Debt Repayment -Discuss long-term debt options for the purchase of high-priced items -Explain the purpose of a debt repayment plan.

Solid Finances Sponsors MSU Extension MSU Human Resources This program is made possible by a grant from the FINRA Investor Education Foundation through.

Credit Intro to Credit & Establishing Good Credit.

Mortgages and Home Loans How to buy a house that you can afford…

Credit Wisdom. Managing Money & Credit: A Lifelong Skill.

PART 2: MANAGING YOUR MONEY Chapter 7 Using Consumer Loans: The Role of Planned Borrowing.

7-1: Buying a Home. Costs of Financing a home: Purchase price = tag price Downpayment = a percentage of the purchase price; between 0% and 30% Interest.

Personal Finance ATM- Automated Teller Machine Credit Cards- revolving line of credit, department store cards, major credit cards (Macy’s, Visa, Mastercard,

Credit Receiving something now and promising payment at a later time. Principle: Actual cost of the good or service. Interest: Amount paid for the use.

Section 4C Loan Payments, and Credit Cards Pages C.

Residency Loans Residency Living Student Loans October 6, 2008.

Section 4D Loan Payments, and Credit Cards Pages

CREDIT – Part 2 Business Issues. Credit Cards Paid over a variable amount of time Finance charge (interest) is called annual percentage rate (APR) expressed.

Loans - Mortgages. Amortization Table Just like Credit cards Month Beginning BalancePaymentInterestPrincipalEnd Balance.

Home buying Case Study By Arthur Espinoza.

Credit What YOU need to know!. What is Credit? Credit is borrowing money now to make an immediate purchase and promising to repay it later.

Learning Objective # 2 Determine the effective cost of borrowing by considering the quoted rate, the number of compounding periods, the timing of interest.

Rent vs. Buy The Finances of Housing and Real Estate.

OU-HCOM FINANCIAL AID Info about Loans OU-HCOM FINANCIAL AID Info about Loans Marie Barone Michelle Kittle.

Automobile Loans 9 th Grade Business Automobile Automobiles are typically purchased with cash or loan/ credit Auto loan-borrowed money to purchase an.

Credit. What is it? – the ability of a customer to buy goods or services before paying for them, based on an agreement to pay later. Always investigate.

Personal Finance. Parents pay 48 percent of college costs. 32 percent comes from income and savings. 16 percent comes from loans. An average student covers.

Using Credit SSEPF4.a, SSEPF4.b, SSEPF4.c. Loans and Credit Cards: Buy Now, Pay Later The U.S. economy runs on credit. Credit – The ability to obtain.

HOW TO GET AND KEEP CREDIT. PICKING A CREDIT CARD You will have to fill out an application. It will ask about where you live, where you work, what other.

Calculating Cost Of Credit. Types of Credit Closed-End Credit ◦ One-time loan that you pay back over a specified period of time in payments of equal amounts.

Unit 1 – Personal Finance Credit & Worker Earning How can the use of credit benefit & hurt consumers?

Agribusiness Library LESSON L060021: CALCULATING THE COST OF CREDIT.

Using Credit Wisely Types of Credit Credit Card Allows user to charge amounts in different places Given a credit limit, or maximum amount you can.

Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.

Pre-test.  A. Your age  B. The length of time you have had the card  C. The amount of money you owe on your credit card  D. The terms and conditions.

Unit 4 Credit and Debt What is Credit? Someone lends you money 1. The original amount borrowed is called the ___ Principal.

Ms. Young Slide 4-1 Unit 4C Loan Payments, Credit Cards, and Mortgages.

Aim: Money Matters: Home Ownership Course: Math Literacy Aim: How does money matter? Home ownership – the big Kahuna! Do Now:

Your Money Matters A Financial Literacy Workshop Presented by the Office of Student Financial Aid Services.

UGHH… Loans and Repayment. Define or Answer Key Vocabulary Terms Principal Interest Loan  Give 2 examples of types of loans a person can get Loan Term.

Mortgages. A mortgage is a loan that is secured by property. Mortgages are large loans, and the money is generally borrowed over a large amount of time.

Sarah Pingel CAFAA Professional Development Seminar April 20, 2012.

Unit Four Good Debt, Bad Debt: Using Credit Wisely.

Paying for My Education 101 A Focus on Financial and Federal Aid Information.

QSR Project by: Megan Hornberger. Medical Billing & Coding $34,970 Annual Salary for Florida.

Understanding Debt Federally insured by NCUA Great Rates. Personal Service. chevronfcu.org 

Consumer Economics Credit Credit Investing Investing.

Write down one costly item that you would buy right now if you had enough credit. What steps can you take now to start building and maintaining a strong.

Ch. 8 Objectives Discuss living arrangements and financial issues that roommates face Describe contractual rights and responsibilities for landlords and.

PowerPoint 2 Loans Economics Unit 3.

Credit Scores Interest on Debt and Interest on Savings

Business and Consumer Loans

Financing Your Higher Education

Presentation transcript:

 Federal student loans usually have the lowest interest rate  Have to start making payments 6 months after graduation  Making payments while in school will save you money on interest  Possibility of being forgiven  Always a fixed interest rate Different types of student loans - Direct Subsidized Loans (Undergraduates) 4.66%, interest payments paid by government while in school - Direct Unsubsidized Loans (Undergraduates) 4.66%, Interest accrues while in school - Direct Unsubsidized Loans (Graduate or Professional Students) 6.21% Interest accrues while in school - Direct PLUS Loans (Parents and Graduate or Professional Students) 7.21%, Interest accrues while in school

 Generally charge a higher rate than federal student loans  Interest rate based on credit score  Having a co-signer will result in a lower rate  Interest rate can be fixed or variable  Variable rates – charge a percent plus some kind of rate instrument, Prime Rate or Libor Ex: Libor + 2%

 Commonly the most expensive form of debt  Can be fixed or variable interest rate Average Rates (Bankrate.com) Fixed – 13.02% Variable – 15.7%  Rates much higher if bad credit or no credit  If you pay off the balance entirely every month, no interest is charged

 Loans made to purchase a house  Interest based on credit score  Can be fixed or variable Average Rates (Bankrate.com) 30 Year Fixed – 4.08% 15 Year Fixed – 3.29% 5/1 ARM – 3.19%  Adjustable rate mortgage (ARM) 5/1: 5 refers to the number of years the interest rate will remain the same,1 refers to the amount of additional interest that can be charged after the initial 5 year period each year

 Loans for the purchase of a vehicle  Interest rate based on credit score  Can be a fixed or variable interest rate Average Rates (Bankrate.com) 5 year fixed, new car – 4.06% 3 year fixed, used car – 4.92%  Most commonly use a fixed rate

 Can be a loan or used as a line of credit  House is used as collateral  Can be fixed or variable interest rate  Interest rate based on credit score Average Rate (Bankrate.com) Line of credit (HELOC) – 4.81% Loan – 6.15%

 Can receive a lower interest rate than previous rate  Fees are associated with a refinance When to consider a refinance - Interest rates have decreased - Large increase in credit score - Can pay off loan in a shorter amount of time - When you are able to find a co-signer