HUMS 202 Lecture Notes - Lecture 9: Predatory Lending, Refund Anticipation Loan, Subprime Lending
Document Summary
Part of loan goes to repaying the principal and other goes to loan, principal portion reduced how much owe lender. Weekly payments pay much more for an item than if paid with cash or installment plan. Borrowing item from store, can purchase and set up pay plan. Understand requirements and cost estimate from insurance company before deciding to lease or buy car. Getting car loan = financing a car, can be used to buy new or used car and the car serves as collateral. Auto service contract: promise to perform or pay for repairs and services, called extended warranty, but service contract not a warranty. Beware of car title loans (using car as collateral, for other loans) Home equity loan: borrowing against the value of home. One-time loan for lump sum offered @ fixed interest rate and repaid in equal monthly payments. Have three days to reconsider a signed home equity loan w/o penalty.
