Sources of consumer credit. Introduction: Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Question

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Answer 1

Question

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

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4. On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for $105,000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY National Bank for an $84,000 conventional loan at 5 percent for 30 years. The lender informs Mr. and Mrs. Cleaver that a $2,100 loan origination fee will be required to obtain the loan. The loan closing is to take place September 22. In addition, escrow accounts will be required for all prorated property taxes and hazard insurance; however, no mortgage insurance is necessary. The buyer will also pay a full year's premium for hazard insurance to Rock of Gibraltar Insurance Company. A breakdown of expected settlement costs, provided by OKAY National Bank when Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on September 21, is as follows: I. Transactions between buyer-borrower and third parties: a. Recording fees--mortgage b. Real estate transfer tax c. Recording fees/document…

Answer 2

Question

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

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Answer 3

Question

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

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Answer 4

Question

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

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Answer 5

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

Answer 6

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.

Conclusion

Hence, these are sources of consumer credit.

Answer 7

Chapter 7, Problem 7.1PQ1

Summary Introduction

To discuss:

Sources of consumer credit.

Introduction:
Credit is the way to get money in advance to fulfill your needs and then returning that amount in some future date.

Answer 8

Expert Solution & Answer

Explanation of Solution

Sources of consumer credit are:

Commercial banks: It offers the widest variety of loan. They normally give loan to the person with established credit history.
Consumer finance companies: They give loan to the people who have bad credit history and have nothing to use as a mortgage because of which they land at high rate.
Credit unions: Credit unions make unsecured loans and only give loans to their members only if a person is not member of the credit union then he/she will not get loan.
Life insurance companies: They generally give loan by taking insurance policy as collateral. They deduct amount of loan if death and maturity arrives early than maturity date.
Federal savings bank: They lend generally to the creditworthy customer. Customer generally needs to use collateral to get loan. Loan rate very according to the size and repayment period of the loan.