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Lesson 18 6 minute lesson Interactive
Comparing Loan Offers
Look beyond the monthly payment to compare rates, fees, term length, and total repayment.
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Lesson goal
Evaluate the full cost of borrowing before accepting a loan.
Three ideas to keep
1
Compare annual percentage rates
2
Longer terms can increase total interest
3
Include origination and other required fees
Try it
Make the call
Loan A has a lower monthly payment but a much longer term than Loan B. What should you compare next?
Knowledge check
Lock it in
What does APR help borrowers compare?
Finish both activities