TEACHING AND LEARNING MONEY WORKSHEET LESSON - BUYING A HOUSE - HOME LOAN

INTRODUCTION TO MORTGAGES

CALCULATING THE MORTGAGE AMOUNT

# MORTGAGE LOAN CALCULATION

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A worksheet introducing students to the concept of a mortgage loan.

Also introduces the concepts of down payment and closing costs.

 LESSON LEARNED   Calculating a Mortgage Loan

 OTHER SKILLS REINFORCED Basic Math Percentages

 SUGGESTED GRADE LEVELS   7+ Worksheet is customizable for multiple levels.

 Suggested Money Lesson Plan for this Worksheet   Questions for discussion: How do people buy houses? What is a mortgage?   Background Information: See information on home mortgage basics for background information on mortgages.   Lesson: Take the students though the steps of understanding the basic mortgage loan calculation on the worksheet. A house is often the most expensive item that people will purchase in their lifetime.  Since a house is expensive, the way that many people are able to afford a home is by taking a loan, also called a mortgage.  A mortgage loan is a loan, often by a bank, that people use to purchase a home. To decide how large a mortgage you might need, there are several different items you will need to look at.  First, you will not likely be able to get a loan for the full purchase price of the house.  This is because lenders, require that people who take mortgages pay a percent of the purchase price immediately.  This is known as the down payment.  Down payments are often 20% of the purchase price of the house. In addition, there will be other costs that you will have to pay to your lender.  These expenses included with a mortgage when purchasing a house are known as closing costs.  Often, these closing costs may be included in the total mortgage loan. Vocabulary: Mortgage Loan Closing Costs Amount Financed Down Payment WORKSHEET Instructions   This worksheet is a mortgage loan introduction.  Students need to fill in the table with the missing values for each of the problems.   This is a random worksheet. You may choose a standard worksheet or customize the worksheet to your teaching needs.   To customize the worksheet, you have several choices (see below).    Make your selections, then press "Get Worksheet."

STANDARD

MORTGAGE WORKSHEET

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CUSTOM

MORTGAGE WORKSHEET

Note - requires Full Membership

This worksheet may be customized with the following settings.

Make any changes you wish, then press "Get Worksheet".

 Number of Questions Normal selection is one question.   Show information comments? Checking this selection will show the introductory text.  Remove this checkmark to only create problem worksheets.   Set Maximum House Price 150,000 300,000 500,000 1,000,000     Include answers?  NOTE: Answers appear on a separate page when printed.       Note - requires Full Membership

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INFORMATIONAL ARTICLES ON MORTGAGES

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