3. General factors to consider when shopping for a consumer loan Factors to Consider Before Taking Out a Consumer Loan You've made the decision to purchase an item that is affordable only with a loan. When shopping for a loan, there are many aspetts of the loans that you should examine. Which of the following questions should be asked and answered about a specific loan proposal before accepting a lender's offer? Check all that apply. If 1 accept the loan, what is my new debt safety ratio? Where is the lending institution located? What is the total cost of transaction (cost of item purchased plus cost of loan)? Does the loan have a prepayment penalty? Do the loan's monthly payments fit in my budget? Your friend suggested you look into a variable-rate loan. What questions should you ask? Check all that apply. How often is the rate subject to change? Is there a maximum rate? What changes after a rate adjustment-the monthly payment amount or the number of monthly payments left on the loan? Can I afford the maximum possible monthly payment? Given the long list of relevant loan-related considerations described above, the paradox of choice often arises when attempting to make borrowing decisions. Which of the following phrases addresses the characteristics and recommended solutions for this phenomenon? Check all that appily. Be prepared to ask for assistance Arises when there are too few alternatives and you wish you had more features or options to select from Keep it simple and select the easiest or least expensive altemative Prepare a list of possible alternatives and make a random selection You're shopping for a big loan, but you have misgivings about Rosa, the loan officer, at an institution you just visited. What are some reasons that may have you uneasy about accepting a loan there? Check all that apply. When you filled out the loan application, Rosa told you to leave out the smaller amounts you owe to department stores. Rosa said that today is the only day you can secure the loan with favorable terms. Rosa said that her loan was most likely the only one you'd be able to obtain. Rosa pointed out that the APR and interest rate were different. Rosa told you that the interest rate is the only important fee to worry about and that discussing the APR is an unnecessary complication. Rosa encouraged you to shop around. When you filled out the application, Rosa said if you weren't sure about something on it, you could take the application home and complete it when you had the correct answers. Rosa discussed options for taking out a smaller loan, such as selling current assets to raise a bigger down payment. What are the characteristics of your reasons for feelng uneasy obout Rosa the loan ofncen Check al thar apply. The way the loan officer omitted pertinent information Feeling under pressure to make a decision Tho loan officer's embellishment of the facts