Which Of These Describes How A Fixed Rate Mortgage Works

Question: What does leasing a car involve?

Answer: renting the car for a specific period of time and paying for its depreciation

Question: When can a bank repossess someone’s car?

Answer: when the owner defaults on the loan payments

Question: Why do many banks consider student loans risky investments?

Answer: Student loans aren’t secured by collateral.

Question: Which of these describes how a fixed-rate mortgage works?

Answer: The monthly payment on a fixed-rate mortgage never changes.

Question: What is one of the disadvantages of getting a government-sponsored mortgage?

Answer: Government mortgages put a limit on the purchase price of a house.

Question: What is one advantage of using a credit card to make purchases?

Answer: You can buy something now and pay for it later.

Question: Which situation would result in a credit card issuer charging a balance-transfer fee?

Answer: A cardholder pays off one credit card with a new credit card.

Question: Why is it important for people to maintain a good credit history?

Answer: so they have an easier time getting loans and credit cards

Question: Which of these credit card features would be best for customers who often forget to send in their payments on time?

Answer: a low late payment fee

Question: Which credit card feature determines the number of days after a purchase before fees or interest are charged?

Answer: grace period