Day 14 - Conditions of a Mortgage

We are just about at making amortization tables ourselves but before we do that, we are going to delve a little bit more deeply into the terminology and the options when dealing with mortgages:

We started off nice and easy, with again finding payments and the total amount paid to reinforce what students already knew. They could quickly see the value in having a shorter amortization period. Then we got into the different kind of payment schedules that banks offer. We discussed why, if you pay the same amount in a year anyway, you still might want to choose the bi-weekly, semi-monthly or weekly payments. We also discussed the benefits of the accelerated weekly and bi-weekly. We then finished off with an example where students saw what kind of a difference making larger payments makes:

Students did have work:

Again, I chose to have students do a few questions that they could easily complete instead of many questions. I understand the benefit of students practice, but that only works if they do some of it!