Florida B.E.S.T. MA.912.FL.3.9

MathGrades 9–12Describe the advantages and disadvantages of short-term and long-term purchases.

The Standard

Compare the advantages and disadvantages of different types of mortgage loans by manipulating a variety of variables and calculating fees and total cost using spreadsheets and other technology.

Florida B.E.S.T. Standards for Mathematics

Teacher's field guide

What This Standard Means

What Students Need to Do

Students compare mortgage options by changing the interest rate, loan term, down payment, points, and fees. They use spreadsheet formulas to calculate payments and total costs, then explain each option's tradeoffs.

What Mastery Looks Like

Students build a spreadsheet that calculates monthly payments, fees, total interest, and total cost. They change rates, terms, and down payments, then explain which loan fits a buyer's stated needs.

Common Misconceptions

Students often choose the lowest monthly payment without checking the loan term or total interest. They may ignore closing costs, points, private mortgage insurance, or rate changes on adjustable-rate loans.

How to Assess It

Give students a $240,000 loan choice: 15 years at 6% with $3,000 fees or 30 years at 6.5% with $2,000 fees. Have them use a spreadsheet to calculate each monthly payment and total cost, then recommend one option.

Lesson moves

Ways to Teach It

  1. Build a spreadsheet comparing fixed-rate and adjustable-rate mortgages, then change the term, down payment, interest rate, points, and fees.

  2. Write a recommendation for a buyer who wants either the lowest monthly payment or the lowest total cost, using spreadsheet results as evidence.

  3. Play Mortgage Match by pairing buyer profiles with loan offer cards, calculating costs, and earning points for justified choices.

  4. Compare current mortgage offers from three lenders, recording rates, terms, points, fees, and estimated total costs in a shared spreadsheet.

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