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Semester Course

5.8 Understanding Mortgages

www.ngpf.org

Approximate Time: 45 minutes

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TEACHER FACING SLIDES

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JUMP$TART STANDARDS

Managing Credit

3b: Differentiate between adjustable-rate and fixed-rate mortgages
3c: Compare monthly mortgage payments for loans that differ in repayment period, amount borrowed, and interest rate

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ASSESSMENTS & GRADING

Important: Please do NOT include any NGPF assessments or answer keys in your Nearpod lessons.

Grading Tip: Each NGPF lesson ends with an Exit Ticket which NGPF recommends for grading.

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CUSTOMIZE IT!

Please review the Nearpod slides and customize the content and activities based on your teaching environment.

Delete teacher facing slides before facilitating lesson to your students!

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FACILITATION

Make sure you have the lesson guide available when you are facilitating (for time management, organization of lesson) and the answer key available when you are grading.

If a resource or activity in a lesson was not transferable to Nearpod there will be a teacher facing slide making you aware.

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LESSON SLIDES

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5.8 Understanding Mortgages

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LEARNING OBJECTIVES

Students will be able to:

Explain what a mortgage is and why most Americans require one to finance a home
Use a mortgage calculator to explore how downpayment, credit score, interest rate, and term all impact the total cost of buying a home
Distinguish between fixed- and adjustable- rate mortgages

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RESOURCE 1: DATA CRUNCH

WHAT PERCENTAGE OF US HOUSEHOLDS OWN HOMES?

On the next slide, analyze the graph on the worksheet to complete the Data Crunch.

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RESOURCE 2: MORTGAGE BASICS

The path to homeownership for many Americans comes through a mortgage. On the next slide, watch the video on Mortgage Basics from Investopedia.

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Now that you have watched the video,

answer four questions!

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RESOURCE 3: CALCULATE - USING A MORTGAGE CALCULATOR

Now that you know a little about mortgages, use an online mortgage calculator to explore some real-life scenarios for prospective homeowners. On the next slide, follow the directions on the worksheet to complete the activity.

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RESOURCE 4: WHICH TYPE OF MORTGAGE IS RIGHT FOR YOU?

In the previous activity, all of the homebuyers were considering fixed-rate mortgages, but there is another less utilized mortgages option --Adjustable-Rate (or ARMs). On the next slide, review the chart that compares the two, and then decide which type of mortgage each person listed in the questions may choose.

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RESOURCE 5: EXIT TICKET

Take the three question Exit Ticket to assess what you have learned about understanding mortgages!