Trevor Schultz Reflective Writing for Mortgage Project MATH 1030

The mortgage finance project in this Math 1030 class was to help students

understand the differences between 30 and 15 year mortgages, the differences in

interest paid over the loan terms, and how each mortgage term might be beneficial to

different financial strategies. In this lab, we used a series of formulas to help us solve

the complexities of mortgages:

Calculating the monthly payment for a mortgage

Compound interest formula

Loan formula
Trevor Schultz Reflective Writing for Mortgage Project MATH 1030

Additionally, the following questions were posed to students to help expand their

knowledge and thinking:

● Do you think this project shows how math can be applied to the real world?

○ Absolutely. One of the biggest opportunities one could have in their lives

where uncertainty could loom would be assuming a mortgage on a home

or piece of real estate. This project gives students a real-world perspective

into what owning a home could realistically be like and what the financial

realities would be like.

● Can you give an example of another application where this type of analysis

would be beneficial? Be specific.

○ I think this would be beneficial when buying a car or when buying a similar

type of investment.You would take the principal amount, how much you

pay monthly plus interest, and that would result in how much you end up

paying over time past the principal loan amount.

● If you were a mortgage broker, why would it be important to be able to explain

the details of this project to clients?

○ Because it could help your clients allocate their savings from a 30 or

15-year mortgage into other parts of their lives. You could help them

become more holistically intelligent about their portfolio and financial

strategy.

● Compare the differences between the 30 year, 15 year, and 30 year with

extra payment plans. What are the "pros and cons" of each?
Trevor Schultz Reflective Writing for Mortgage Project MATH 1030

○ The 30-year mortgage could allow someone to pay their mortgage slower

over time while allowing for other financial goals to be met in the

meantime. However, one is tied to a mortgage for 30 years. A pro of a

15-year mortgage is that you pay your mortgage off faster, but a con is

that it may come at the expense of other financial goals. If one potentially

finds themselves in the middle, a 30-year with extra payments monthly

could be an option. It’s the middle ground between a 30-year and 15-year

mortgage but may also allow for moderate savings and financial goals.

● Did this assignment change your opinion of the usefulness of math?

○ Yes, this assignment changed my opinion on the usefulness of math. I

think that a lot of people go into mortgages without being informed on the

financials and what they’ll end up paying over the life of the mortgage.

Even being aware of the general formulas I believe gives one a step

ahead than most with using math usefully and effectively in life.

● In Part I, you were asked to "do a search on the internet for the "average

salary" of either your future profession or by your future college degree and

compare it with" the minimum annual gross salary you'd need in order to

afford the house. Comment on what you found out. Does it change your

views on either purchasing a home or your choice of major?

○ It changes my views on purchasing a home. I understand that purchasing

a home is much more beneficial long term than renting a home, but the

price of real estate and home is so unrealistic. I don’t want to be tied down

to something that is so ‘anchored’ and limited. I’d rather use that money
Trevor Schultz Reflective Writing for Mortgage Project MATH 1030

towards my retirement or in the moment to experience life right now. My

choice of major and my career choice is not affected more so than by the

cost of a home currently.