Khan Academy on Mortgage Math

This week, we will be discussing debt in various forms.  One of the more common forms is a mortgage, which is a type of loan that has a level payment over its term.  Here, Salman Khan of Khan Academy presents a reasonably decent discussion of the math behind how to calculate a mortgage payment.

It’s a 20 minute video, which I watched, and which I think is worth your time to watch.

However, in class, I will present what I think is a much simpler way to think about the issue.

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One comment

  1. I came across an article that talks about the prospects of Mortgage refinancing in US next year. The reduction in the federal loan fees and lower mortgage rates will drive low income borrowers to refinance their mortgages in 2015. My concern, however, is how the increase in the federal funds rate will influence the mortgage rates and, consequently, low income borrowers?

    http://www.wsj.com/articles/fee-cut-lower-rates-could-boost-mortgage-refinancings-1421105102

    Like

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