Final answer:
The total payback for Mortgage A is $110,158.20, and for Mortgage B, it is $137,495.80. These numbers are obtained by multiplying the monthly payments by the total number of payments for each mortgage term.
Step-by-step explanation:
Stephen is comparing two mortgage options for his $80,000 mortgage. To calculate the total payback for each mortgage option, we must multiply the monthly payment by the number of payments over the life of each mortgage.
Mortgage A (15 years at 4.5%)
Mortgage A has monthly payments of $611.99. Over 15 years, there are 15 x 12 = 180 monthly payments.
Total payback for Mortgage A = $611.99 per month x 180 months = $110,158.20.
Mortgage B (30 years at 4%)
Mortgage B has monthly payments of $381.93. Over 30 years, there are 30 x 12 = 360 monthly payments.
Total payback for Mortgage B = $381.93 per month x 360 months = $137,495.80.
In conclusion, the total payback for Mortgage A is $110,158.20 and for Mortgage B it is $137,495.80.