Devin Brog

Meyer

Math 1030

12 November 2020

Reflective Writing for Mortgage Project

This project does a great job of showing how this type of math can and most

likely will be used by everyone in the future. Buying a house is a very common thing in

peoples future, and almost everyone can’t pay it upfront. This is where the loan comes

in. Many people will have to take out loans not only for a house, but also for college.

Knowing these skills can help you in making your decision in what student loan to get so

you end up with the least debt possible. Some people will also have to take out a loan

for a car. These skills will help any time when dealing with loans.

The person that deals and helps people with loans is called a broker. I have not

had much experience with brokers, but I can guess that there are some out there that

don’t give you the best loan possible for your circumstances. If you know how loans

work, then you can figure out a plan that will work for you. Then you can take this plan

into a broker, and they can help with a compromise if they don’t like your plan. If I were

a broker, it would be very important for me to be able to explain how loans work and the

advantages and disadvantages of different loan plans. I feel this is important because

the wrong plan for a client could hurt their life extremely, and I do not want that to

happen.

There were three different types of loans we had to compare while doing this

project: 30 years, 15 years, and 30 years with extra payments. For the 30 year plan, it
had the cheapest monthly payments but the interest made it cost the most. The next

plan was the 15 year one. This plan was the cheapest overall, but the monthly

payments were the highest. The last option in my opinion was the best option. This was

the 30 year plan with extra payments. This was the same plan as the 30 years, but

instead of paying the minimum amount, you paid more than that every month. This plan

allows the most flexibility. You decide if you pay the extra each month, but there is no

punishment if you don’t. While paying the extra, it also shortens the time that you have

to pay these monthly payments. This is why I believe that this plan is the best/most

flexible plan.

I have always thought that math was going to be useful in my future in whatever I

do. I just don’t believe some of the stuff that we learn in most math classes is very

useful in the future. This project took a real life purchase that most people make in their

lifetime, and gives us three different loan plans to solve. For all three of the plans, we

had to find the total amount we would pay, the total interest, and then compare it to the

other plans. This is very similar to what you have to do in real life with loans, but most

times there is a broker that will help you.