Final answer:
The required down payment is $44,000. The amount of the mortgage is $176,000. The monthly loan payment is approximately $1,109.80 and the total cost of interest over 30 years is approximately $211,329.61.
Step-by-step explanation:
To find the required down payment, multiply the price of the home ($220,000) by 20%. The down payment is $44,000.
To find the amount of the mortgage, subtract the down payment from the price of the home. The amount of the mortgage is $220,000 - $44,000 = $176,000.
To find the monthly loan payment, we can use the formula for calculating the monthly payment of a fixed-rate mortgage: P = (r * A) / (1 - (1 + r)^(-n)), where P is the monthly payment, r is the monthly interest rate (6.5% / 12 = 0.0054167), A is the amount of the mortgage ($176,000), and n is the total number of monthly payments (30 years * 12 months/year = 360 payments). By plugging in these values, the monthly loan payment is approximately $1,109.80.
To find the total cost of interest over 30 years, we can multiply the monthly loan payment by the total number of payments and subtract the amount of the mortgage. Total cost of interest = (monthly loan payment * total number of payments) - amount of the mortgage. By plugging in the values, the total cost of interest over 30 years is approximately $211,329.61.