Mortgage Worksheet

Most mortgage worksheets hand students pre-filled numbers and ask them to calculate a payment. This one asks them to go find the numbers themselves. Students research actual mortgage terms and interest rates, use an online mortgage calculator to fill in payment tables for three loan terms and two loan types, and then compare three sample home prices side by side.

The structure moves in three parts. Part 1 has students research current rates for 30-year, 20-year, and 15-year mortgages, then compare fixed-rate against adjustable-rate loans, recording advantages and disadvantages of each in a table. Part 2 is a group discussion built around three open-ended questions: how loan term affects total cost, what factors matter when choosing a loan type, and how understanding mortgages supports long-term financial decisions. Part 3 asks students to apply what they researched to three specific home prices, calculating loan amount, monthly payment, and total payment for each using a 30-year fixed-rate mortgage and a standard 20% down payment assumption.

Because students pull real interest rates and use an actual mortgage calculator rather than working from numbers you supply, results will vary by student and by the day they do the research. Current mortgage rates move week to week. That's a feature here, not a gap. It means two students working the same worksheet in the same class period can land on different, both-correct answers, which sets up a richer comparison discussion than a worksheet with one fixed answer key.

This works best for students who already understand what a down payment and an interest rate are. It's less an introduction to mortgages and more a chance to apply that vocabulary to real numbers and see how loan term and loan type change the total cost of a home.

Below is the worksheet exactly as it appears in the Rapunzl curriculum, followed by teacher notes on how to use it in class.

This activity is from Module 18 of the Rapunzl curriculum, Buying Your First Home.

How Do Mortgages & Loans Work?

In this activity, students delve into the world of mortgages and loans, learning how different options impact home buying. Through research, calculations, and discussions, they gain practical insights into making informed financial decisions in the real estate market.

Part 1: Exploring Mortgage Basics

In this activity, you'll delve into the world of real estate and mortgages. You'll learn about how mortgages work and how they impact your ability to buy your first house. Work individually or in groups, as instructed by your teacher.

1. Research

Look up information about mortgages and how they work. Make notes on the key terms and concepts related to mortgages.

1. Mortgage Calculator

Use an online mortgage calculator to explore different scenarios. Calculate how much your monthly mortgage payment would be for different loan amounts, interest rates, and loan terms. Record your findings in the table below.

Part 2: Group Discussion

Work in groups to discuss the following questions:

1. How does the choice of mortgage term affect the total amount you pay over the life of the loan?
2. What factors should you consider when deciding between different types of loans for purchasing a house?
3. How can understanding mortgages and loans help you make informed decisions about your financial future?

Part 3: Making Informed Decisions

Imagine you have three different houses in mind, each with a different price. Use the mortgage knowledge you gained to compare the monthly payments and total payments for each house using a 30-year fixed-rate mortgage.

House Price: Search for houses in their desired location on real estate websites, property listing platforms, or through real estate agents.

Loan Amount: The loan amount is the difference between the house price and the down payment. If the down payment is not explicitly stated, students can assume a typical down payment percentage (e.g., 20%) and calculate the loan amount accordingly.

Interest Rate: Get rates from banks or financial websites. These rates can vary based on the current market conditions and the borrower's creditworthiness. Students can use average interest rates as a starting point for their calculations.

Monthly Payment: To calculate the monthly payment, students can use online mortgage calculators to input the loan amount, interest rate, and loan term to get an estimate of the monthly payment.

Total Payment: The total payment is the sum of all monthly payments over the entire loan term. This can be calculated by multiplying the monthly payment by the number of months in the loan term (e.g., 30 years = 360 months).

Remember, the real estate market and financial decisions can be complex, but with knowledge and careful consideration, you can make choices that best align with your goals and financial well-being.

Teacher Notes

Since students pull their own interest rates for Part 1 and Part 3, expect some variation across the room. Rates move by the week and by lender. Ask a few students to share what rate they found before moving to the next section, and use any spread in their numbers as a quick discussion point about how even a half-point difference in rate changes a monthly payment.

Part 1's fixed-rate versus adjustable-rate table works best after a short explanation of what each term means, since the worksheet assumes students already know the difference and asks them to research advantages and disadvantages rather than definitions. If your class hasn't covered ARMs yet, spend five minutes on that before releasing students to research.

Part 3 is the section to protect time for. Comparing three house prices side by side, at the same loan term and the same down payment assumption, is what makes the loan amount and total payment numbers comparable across students. Remind them to use the 20% down payment assumption consistently unless your class has already covered other down payment scenarios.

The group discussion questions in Part 2 work well as a bridge between the two research sections. Use them to check that students can explain their table entries in their own words before they move to Part 3.

This worksheet is one piece of the full Buying Your First Home unit inside the Rapunzl teacher portal, where activities like this one sit alongside articles, guided practice, and a classroom investing simulator built for grades 6–12.

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