Lesson
Mortgages & Amortization
Summary
A 30-year mortgage costs more in interest than the house itself—and most buyers never realize it. This lesson unpacks how amortization quietly front-loads interest, why down payments and PMI matter, and how a few extra dollars can save tens of thousands.
Bellringer: Where Did the Money Go?
- Present Maya's scenario: $300K home, 10% down, 30 years at 7% = $646K paid.
- Students write where the extra money goes, then debate if interest is "wasted" money.
Instruction
- Define mortgage, principal, interest, amortization, PMI, DTI, and fixed vs. ARM.
- Show how interest front-loads and contrast amortized vs. revolving loans.
Activity: Early Mortgage Payoff Calculator
- Establish Maya's baseline in Banzai's Early Payoff Calculator.
- Run three scenarios: 15-year term, extra $150/month, and the credit score penalty comparison.
Discussion: Rent vs. Buy
- Challenge the "renting is throwing money away" myth.
- Students name one scenario where renting beats buying financially.
Wrap-Up & Assessment
- What does amortization mean, and why is most of an early payment interest?
- Why does a 20% down payment matter?
| Est. Time | Activity | Description |
|---|---|---|
| 5 min | Bellringer: Where Did the Money Go? |
|
| 10 min | Instruction |
|
| 18 min | Activity: Early Mortgage Payoff Calculator |
|
| 7 min | Discussion: Rent vs. Buy |
|
| 5 min | Wrap-Up & Assessment |
|
Lesson Prep
Early Mortgage Payoff Calculator
The quicker you payoff your mortgage, the less you'll pay in interest.
Class Presentation
Includes a 22-slide deck with teacher notes. Present from Banzai, download a PDF, or copy it to Google Slides.
Presentations, Ready to Go
- Built-in PresentationPresent full screen, straight from Banzai
- Copy to Google SlidesMake an editable copy for your class
- Download or PrintSave as a PDF or print
- Teacher NotesSlide-by-slide guidance, printable as one handout
Unit 6: Credit & Debt
Loan Types
Not all loans are created equal—a mortgage and a payday loan share a name but live in different financial universes. This lesson explores secured vs. unsecured loans, common loan types, and loan structures.
Mortgages & Amortization
A 30-year mortgage costs more in interest than the house itself—and most buyers never realize it. This lesson unpacks how amortization quietly front-loads interest, why down payments and PMI matter, and how a few extra dollars can save tens of thousands.
Credit Reports
Before there's a score, there's a report. This lesson outlines what a credit report is, where it comes from, how to read it, and how to fix it.
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