Reflective Writing for Mortgage Project

The lab for this assignment was to research and learn how mortgages are done. The

assignment entailed calculating mortgage rates, and interest in loans for buying a house. It went

over things like 15-to-30-year loans. We calculated these things using formulas, we learned in

previous units such as the simple interest, loan, and compound interest formulas. Logarithms

were also used at one point as well. These formulas were used to calculate said loans and

interest, to help gain a better understanding of how housing payment works.

I think this assignment was one of the most beneficial and applicable to the real world.

Out of all of the assignments I have done in my education career, this one has the most value that

applies to real world situations. In this case dealing with a mortgage. The equations and

comparisons we did for this assignment showed how much you could save with refinancing

options, and how housing prices are affected by the market. Both of these things which are

beneficial to anyone who wants to be a home owner. These equations can be used for more then

just mortgages, given that it deals with percentages. Percentages are used for all things in

finance, and loans are used for more than just housing such as businesses and vehicles.

The reason it would be important to explain these details as a mortgage broker, would be

because it affects the customer in a big way in the long run. If you add up the difference in

interest from a 30-year plan to a 15-year plan, the money saved is staggering. Those funds could

be used for more then just housing if saved. The difference in a 30-year plan versus a 15-year

one is simple, the difference of upfront payments and interest is the biggest part. In a 30-year

plan, you pay less each month over a longer period of time, but there are more fees involved and
larger interest. In a 15-year plan, you pay more upfront each month over half the time. However,

the fees and interest are lesser for this plan. This adds up over time. So, the trade off is paying

less each month over your 30-year plan, but losing out on more money over time. Meanwhile the

15-year plan has you paying more monthly, but you save a ton of money in the long run because

of interest and rates. So, it’s up to people if they have the money to pay for a shorter-term

mortgage, or if it makes more sense for their budget to pay for a longer term one.

This assignment did definitely change my opinion on the usefulness of math. Most of the

time when I learned math, these equations would only be used in specific situations. If not at all.

This assignment was different however. The equations we used here are used for something most

if not all people have to deal with at some point. It helps to hash out the best plan for a mortgage

based on your rates and what will be different depending on what plan you go with. My

perception of longer form equations and their use has changed because of this. Now I know that

these kinds of equations are used even in day-to-day situations such as these.

After researching my major and its job opportunities versus the housing market, most of

my assumptions held true. The housing market is already pretty expensive in Utah, but I chose

my profession more on a balance of stability and interest. I wanted to go into the arts when I was

younger, and held onto that idea for a while. However, at some point I had to figure out if that

would be sustainable or possible. Unlike the movies, following your artistic dreams doesn’t

always pan out. In fact, it doesn’t happen often. So that’s why I shifted into a major that could

still apply my talents and interests, but in a more sustainable job. I would still like to be a home

owner, as many others would be. However, I made this decision to shift major’s way before

looking into it for this assignment.