Title: Lend a Hand  (Acquiring a Mortgage)

Grade Level(s): 9-12

Subjects: Family and Consumer Science (FACS), Math, Business Math

Learner Outcomes:

• The students will learn the difference between simple and compound interest.
• Students will learn Mortgage Terms
• Students will understand how different interest percentages affect monthly payments.
• Students will understand how different interest percentages effect total payments
• Students will understand how different down payments effect monthly payments.
• Students will understand how different down payments effect total payments.
• Students will experience the simulated purchase of a home using a mortgage calculator on the Internet., a  Locked Excel Chart or an  Unlocked Excel  Chart

Materials:

• Compound Interest Formula
• Classified section of the Newspaper

         Computers with Internet access and Excel software
                    Mortgage Calculator

Teacher Notes:

There are different ways of calculating mortgage:

• The teacher will explain the difference between simple and compound interest
• Students will access the web site Mortgage terms and used the defined terms to complete a crossword puzzle.
• The students will access  Locked Excel Chart to develop a data table to calculate mortgage rates
• The students will use the Internet homesmart current interest rates or Finding Banks within a State to find at least three different interest rates
• Student will enter at least three different interest rates into an  Excel chart to develop a bar graph displaying the amount of money saved by acquiring the lowest rate.
• Using the same interest rates as above students will calculate how different down payments will affect monthly payments as well as total interest paid over the life of the loan.
• Students will find houses for sale on the Internet
• Once the students find the house they "want to buy" they are to experiment with the Excel chart  to find  how much they  will have to pay for their house, depending on the down payment and amount of interest.
    Rubric

• The teacher can provide specific data for the students to use- same housing prices, same interest rates, same down payment amount, etc.
• Appropriate for all students in all subject areas.
• This lesson may need to be modified according to the students IEP.

• This site En espanol  is also written in Spanish and could be done in a Spanish class.
• Using an Unlocked Excel  Chart students will enter interest rates, years of the loan, downpayments bing made and total amount borrowed. They will then develop bar graphs to depict the affect that interest rates and down payments have on total interest.

• Completion of all assigned activities

Math

• Algebra/Geometry Prep .2; 1.17

• Financial Goals, Values, & Concerns 2.11
• Increasing Financial Resources 2.12
• Solving Financial Problems 2.16

• Identifying loans 1.1.8
• Calculate interest 1.1.9
• Methods of payment 1.1.3

Math

• Understands and applies basic and advanced properties of functions and algebra
• Understands and applies basic and advanced concepts of statistics and data analysis

• Manages money effectively
• Makes effective use of basic life skills

• Human Services (Personal & Family Services)
• Business/Marketing (Finance/Accounting, Management/Marketing)

• Mortgage Calculator: Estimated Monthly Payments
• Finding Banks within a State
• Bankrate.com Homepag
• Homesmart - Current Interest Rates
• Seeley- Foundations of Algebra and Geometry, Glenview, Illinois, Scott Foresman, 1998, Chapter 4

                 Cameron High School
                 61 Maple Avenue
                 Cameron, WV   26033