Mortgage Exercise

Name: _______________________ Block: _____

Directions: Research two houses of your choice both have to be from SC( Nothing over 1
million). Using any websites like realtor.com or zllow.com, you will research and find a price
for the house of your choice, year built, and some features of the house (number of rooms,
square footage, basement, two story, etc…) on this document you will put your research info
and pictures of the house you choose. Then you will calculate what the loan payment is, total
amount paid for house, total interest paid, and amount saved and monthly payments saved
based on extra payments.

Part #1. What do you value in a car? What are you looking for in a house. Describe in words by
creating a list of what you are looking for in a house you want.

Part #2. Research and find two different houses that meet your criteria that you want and list the
information below using sites like realtor.com or Zillow.com
House #1:
A.) Pictures of house….

B.) Price…..

C.) Features……

D.) Website…..
 Mortgage Exercise

House #2:
A.) Pictures of house….

B.) Price…..

C.) Features……

D.) Website …..

Directions: Fill out the table info for the following houses you chose using the website listed
https://www.bankrate.com/mortgages/mortgage-calculator/

House #1 Info

Loan 15 years 15 years 30 years 30 years

Price of house
5% down payment
Interest rate 6% 7% 7% 8%
Monthly payment
Total Interest Paid
Total Amount Paid
for house when
paid off
Payoff date

House #2 Info

Loan 3 years 4 years 5 years 6 years

Price of house
5% down payment
Interest rate 6% 7% 7% 8%
Monthly payment
Total Interest Paid
 Mortgage Exercise

Total Amount Paid

for house when
paid off
Payoff date

Directions: Now you decide to try to pay your mortgage off sooner. You decide to pay an extra
$200 a month towards your monthly payment. Lets see how that affects your mortgage.

House #1

Loan 3 years 4 years 5 years 6 years

Price of vehicle
5% down payment
Interest rate 6% 7% 7% 8%
New Monthly
Payment
New Total
Interest Paid
New Total
Amount Paid
New Payoff Date

House #2

Loan 15 years 15 years 30 years 30 years

Price of house
5% down payment
Interest rate 6% 7% 7% 8%
New Monthly
Payment
New Total
Interest Paid
New Total
Amount Paid
New Payoff Date
 Mortgage Exercise

House #1….

How much did you save in total interest from the original loan compared to paying the extra
$200 every month?

Loan 15 years 15 years 30 years 30 years

Price of vehicle
Interest rate 6% 7% 7% 8%
Total Interest
amount saved
How many
months did you
cut off the loan
What is that
total of number
of months equal
to in all of those
monthly
payments you
saved

House #2….

How much did you save in total interest from the original loan compared to paying the extra
$200 every month.

Loan 15 years 15 years 30 years 30 years

Price of vehicle
Interest rate 6% 7% 7% 8%
Total Interest
amount saved
New Payoff Date
How many
months did you
cut off the loan
What is that
total of number
of months equal
to in all of those
monthly
payments you
saved
 Mortgage Exercise

Reflection:

If you had the opportunity to buy both of the homes, which year loan and interest rate would
you take for each of your homes and why. Please relate it to your monthly payment, your
savings, the length of the loan, total interest paid and total cost of house when it is paid off. Use
the data from the different loans to justify your decision.

House #1 reflection:

House #2 reflection: