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Compare the cost of paying a higher interest rate and lower points versus a lower interest rate and more points.
Remarks
Example: Assuming all of the following were originally 15 year mortgages, which fixed rate mortgage cost the mortgagor the least?a) 7.375% interest + 0 points paid off in 10 years
b) 7.375% interest + 0 points paid off in 7 years
c) 7 % interest + 3 points paid off in 10 years
d) 7 % interest + 3 points paid off in 7 years
General Information
Subject Area: X-Mathematics (former standards - 2008)
Grade: 912
Body of Knowledge: Financial Literacy
Idea: Level 2: Basic Application of Skills & Concepts
Standard: Loans and Financing - Become familiar with and describe the advantages and disadvantages of short-term purchases, long-term purchases, and mortgages.
Date Adopted or Revised: 09/07
Content Complexity Rating:
Level 2: Basic Application of Skills & Concepts
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More Information
Date of Last Rating: 06/07
Status: State Board Approved - Archived
Related Courses
This benchmark is part of these courses.
1200500: Advanced Algebra with Financial Applications (Specifically in versions: 2014 - 2015 (course terminated))
7921022: Access Economics with Financial Literacy (Specifically in versions: 2014 - 2015, 2015 - 2018, 2018 - 2023, 2023 and beyond (current))
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Alternate version of this benchmark for students with significant cognitive disabilities.
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