Question

You took out a $180,000 mortgage, at an APR of 7.5%. The monthly payments are 1021.69. What is the total costs of the mortgage for the 30 years

Answer 1

$453,086.82

The interest payments are:

$273,086.82

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Answer 2

• $204338.00

Explanation:

The monthly payments amount:

• $1021.69

Number of payments:

• 30*12 = 360

Total payment amount:

• 360*1021.69 = 367808.40

The amount of mortgage x, considering the APR:

• 367808.40 = x*30*7.5/100
• 367808.40 = 2.25x
• x = 367808.40 / 2.25
• x = 163470.40

Amount of down payment:

• 180000 - 163470.40 = 16529.60

The cost of the mortgage:

• 367808.40 - 163470.40 = 204338.00