Title: Prepare for a major purchase.
Course: Navy JROTC IV (09104) > Section: Managing Personal Finances

Preparation should include

- deciding how much one can afford
- accounting for other factors in the decision to make a major purchase
- considering whether to use cash, credit, or a loan
- evaluating the actual cost of the purchase, including the real cost of financing.

Process/Skill Questions:

- What does APR stand for?
- What are the advantages and disadvantages of leasing a vehicle?
- What is equity?
- What is escrow?
- When are you required to purchase private mortgage insurance from the lender?
- What are closing costs?