Wk 12 Exit Ticket 4.6,4.7, &4.8

Borrowers typically delay making mortgage payments because their home cannot be repossessed for nonpayment

The principal on a mortgage is high and the term is long

The APR on a mortgage is typically between 20-30%, which is higher than for other types of debt

Homeownership is not very common in the US, so mortgages are priced high because demand is so low

You want low, predictable monthly payments

You want to minimize the amount of interest you’ll pay over the life of the loan

You want to take advantage of the ups and downs of the market and don’t mind risk

You want to make high monthly payments and close your mortgage sooner

Choose a shorter loan term

Qualify for a lower interest rate

Increase her down payment

Choose a mortgage with a higher APR

They are a fast, easy way to save money and budget effectively

They meet the need for quick cash for very large purchases such as cars and homes

They are a terrific way to build your credit history and improve your credit score

They are accessible to people who need to borrow small amounts of money and don’t have any better options

APR can easily be over 200%

Easy to obtain without a lot of paperwork

Requires a credit check and suitably high credit score

Requires payment in full in less than a month

It's a good debt as it's seen as an investment with potential future returns

It's a bad debt since education doesn't guarantee a job

It's a bad debt since all student loans are risky

It's a good debt only if David manages to secure a job immediately after graduation

Their account will be closed

Their purchase might be rescinded

They might be charged a late fee and their account could be sent to collections

Their interest rate might significantly increase

Maria will likely save money because most stores offer deals for emotional shoppers

Maria will likely make wise financial decisions since shopping can be therapeutic

Maria's credit card company will likely reduce her interest rates to support her during this emotional time

Maria may make impulsive purchases and accumulate debt

The amount of money people borrow using payday loans is typically quite high – $10,000 or more – so the fees are also high

They make most of their money through ATM withdrawal fees as well as overdraft fees on checking accounts

The loan amounts are small, but the fees charged are relatively high and are renewed on a very short time-scale

The loans go to affluent banking customers, so they charge a lot for the exclusivity

radio and tv commercials

partnerships with major banks

connection to your credit score

promotion on social media