Standard #: MA.912.F.3.12 (Archived Standard)


This document was generated on CPALMS - www.cpalms.org



Compare the cost of paying a higher interest rate and lower points versus a lower interest rate and more points.


Remarks


Example: Assuming all of the following were originally 15 year mortgages, which fixed rate mortgage cost the mortgagor the least?

a) 7.375% interest + 0 points paid off in 10 years
b) 7.375% interest + 0 points paid off in 7 years
c) 7 % interest + 3 points paid off in 10 years
d) 7 % interest + 3 points paid off in 7 years

General Information

Subject Area: X-Mathematics (former standards - 2008)
Grade: 912
Body of Knowledge: Financial Literacy
Standard: Loans and Financing - Become familiar with and describe the advantages and disadvantages of short-term purchases, long-term purchases, and mortgages.
Date Adopted or Revised: 09/07
Date of Last Rating: 06/07
Status: State Board Approved - Archived

Related Courses

Course Number1111 Course Title222
1200500: Advanced Algebra with Financial Applications (Specifically in versions: 2014 - 2015 (course terminated))
7921022: Access Economics with Financial Literacy (Specifically in versions: 2014 - 2015, 2015 - 2018, 2018 - 2023, 2023 and beyond (current))


Related Resources

Lesson Plan

Name Description
Shopping for a Home Mortgage Loan

Students will analyze the data given to decide which type of loan they will buy. After selecting their options, students will estimate the first loan payment. FHA loans offer a better interest rate than conforming loans, but buying premium insurance is a requirement to qualify for an FHA loan, increasing the upfront cost of the loan. Fixed interest rate loans seem like the best choice because you have the same mortgage payment every month; however, adjustable rate loans offer a better interest rate and it has a cap on the interest rate.

Model Eliciting Activities, MEAs, are open-ended, interdisciplinary problem-solving activities that are meant to reveal students’ thinking about the concepts embedded in realistic situations. Click here to learn more about MEAs and how they can transform your classroom.

Printed On:4/26/2024 1:20:22 PM
Print Page | Close this window