Borrowing money for a house
Students “buy” a local home and calculate payments based on the principal, interest rate, and length of mortgage loans to learn how different loan terms affect the overall cost.
The amount actually paid for a home is determined by the price and the mortgage loan’s specific terms.
- How do the principal, interest rate, and loan term affect mortgage payments?
- How do you compare loan offers to get the best deal?
- Make informed choices about mortgages
- Calculate monthly payments for loans based on the principal, interest rate, and loan term
What students will do
- Calculate monthly payments on three mortgage loans.
- Compare the three loans to identify the best deal for them.
- Reflect on ways to reduce the amount owed on a loan.