Before you decide on what type of loan you’ll need, you should be able to identify the different parts of a loan, including its interest rate, fees, term, and the principal amount you’ll be borrowing.
Watch the video to Learn About Loans, then test your knowledge at the end of the lesson.
When shopping for a loan, the first thing to consider is how much you need to borrow. You should also look closely at loan features like:
A. Interest, APY, and hybrid
B. Interest, fees, and terms
C. Interest, fees, and back-end ratio
D. APY, fees, and terms
Which of the following options is a type of loan?
A. Roth
B. DMP
C. Unsecured
D. Retail
Hybrid loans are a combination of fixed and adjustable-rate loans where the interest rate is fixed for a set time, then begins periodic adjustments.
A. True
B. False