Wyatt Streich

Math 1035

Professor Thorn

17 March 2023

Mortgage Lab Reflective Writing

Introduction

The Mortgage lab signature assignment represents a valuable learning experience that

serves as a helpful exercise for individuals interested in financial planning. In this assignment,

we must perform calculations on a diverse set of mortgage-related factors. These include

approximating interest rates for a given loan, identifying the total amount paid throughout a 15 or

30-year mortgage, and forecasting the property's future value. I needed a solid understanding of

loan formulas and compound interest to calculate these figures. Ultimately, this assignment has

significantly enhanced my financial literacy and preparedness in retirement planning and real

estate acquisition.

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

This project serves as an excellent demonstration of how one can apply mathematics in

practical, real-world scenarios. First-time homebuyers are often overwhelmed with information

from lenders, realtors, banks, and the internet, which can lead to poor financial decision-making

in the future. However, by engaging in such exercises, individuals are equipped with the tools

and knowledge to calculate critical factors such as affordability based on their income, total

interest cost, and other essential metrics. This skill set applies to more than just real estate, such

as various financing scenarios, including purchasing automobiles or other assets.

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

beneficial?

Another application where this type of analysis would be beneficial is in the context of

student loans. Many students and recent graduates face the challenge of repaying large amounts

of debt incurred during college or graduate school. Using mathematical techniques to calculate

loan repayment schedules, interest rates, and total interest costs, individuals can make informed

decisions about how much to borrow, how much to pay each month, and how to prioritize

different loans. This knowledge can help individuals avoid excessive debt, reduce their overall

interest costs, and better manage their finances in the long term.

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

of this project to clients?

As a mortgage broker, being able to explain the details of mortgages to clients would be

essential for a couple of reasons. Firstly, it helps to establish trust and credibility with clients, as

they can see that the broker possesses a deep understanding of the intricacies of the mortgage

process. Secondly, it would enable the broker to better educate clients about the costs and

benefits of different loan options and the long-term financial implications of their decisions.

Understanding the math behind mortgages can help clients to make more informed decisions,

ultimately resulting in a better overall outcome for both the client and the broker.

Compare the differences between the 30-year, 15-year, and 30-year with extra payment

plans. What are the "pros and cons" of each?

Based on the analysis of the three repayment plans, I prefer the 15-year loan despite the

higher monthly payments, as it would allow me to pay off the house in just 15 years altogether.

By choosing the 15-year loan, I would be saving myself a significant amount of money,
specifically $120,612.6, in comparison to the 30-year loan. However, if the 15-year loan is not an

option due to financial constraints, the 30-year loan with an additional monthly payment of $100

would be the second best option as it would save me from paying a minimum of $33,999.92 in

interest. It is worth noting that the 30-year loan requires a monthly payment of $1,149.51, and

the total amount paid back with interest would be $413,823.6, while the 15-year loan would

require a monthly cost of $1628.95, and the total amount paid back with interest would be

$348,605.57. The 30-year loan with the extra monthly payment of $100 would require a monthly

cost of $1,249.51, and the total amount paid back with interest would be $378,823.68.

Did this assignment change your opinion of the usefulness of math? Write one paragraph

stating what ideas changed and why?

The assignment provides a practical application of mathematical concepts, such as

compound interest and loan formulas, to real-world scenarios, specifically in the context of

home buying and mortgage loans. By working through the various parts of the assignment, I

can see the relevance of math to my everyday life and appreciate how I can use mathematical

principles to make informed financial decisions. Additionally, I developed a greater

understanding and appreciation of the importance of financial literacy, which I can apply to

other areas of personal finance beyond home buying and mortgage loans.

The average salary for video editors

I was surprised to learn that the average salary of a video editor is around $50,000 per

year. It's lower than I expected, making me wonder if pursuing a career in video editing would be

financially feasible for me. As someone who is currently trying to crave my way into the film

industry, this information is something I need to take into account. However, this information
will not change my views on purchasing a home. While salary is essential, many other factors go

into making such a big decision.