Remarks
Example: If you have a 5-year balloon mortgage with a 15 year amortization schedule, a rate of 6.5%, and a $100,000 loan what would the remaining balance be after the end of the fifth year?Related Courses
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Lesson Plan
STEM Lessons - Model Eliciting Activity
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.