Question

Deshaun and marsha are considering a $175,000 mortgage for 15 years at a 4.4% interest rate. with this information, their monthly payment would be $1329.81. if they only make the minimum payment each month, what is the total payback of this loan? how much of this total payback is interest?

Answer 1

The total payback of a $175,000 mortgage over 15 years at a 4.4% interest rate with monthly payments of $1329.81 is $238,964.60, of which $63,964.60 is interest.

Step-by-step explanation:

Deshaun and Marsha are considering a $175,000 mortgage for 15 years at a 4.4% interest rate, with a monthly payment of $1329.81. To calculate the total payback of this loan, you would multiply the monthly payment by the number of months in the term: $1329.81 * (15 years * 12 months/year) = $238,964.60. To find out how much of this total payback is interest, you subtract the original loan amount from the total payback amount: $238,964.60 - $175,000 = $63,964.60. Therefore, the total amount paid in interest would be $63,964.60.