Key Term Typical Amounts and Ranges What To Watch Out For Why It Matters Loan amount Varies Ensure it matches the agreed price Can hinder your ability to borrow in the future Annual percentage rate (APR) or interest rate 8% to 22% Higher APR increases total loan cost The higher the rate, the higher your monthly payment Loan term length 24 to 84 months Longer terms mean you’ll pay more in interest over time A lower monthly payment increases your total cost and can keep you in debt longer Monthly payment Depends on loan amount and interest rate Check affordability within your budget Must fit your budget Down payment 0% to 20% or more Down payments come out of your budget Larger down payments can lower the amount you must borrow and the total interest you pay Fees and penalties Large range…