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Assuming good credit, your monthly payment for a $400,000 30-year mortgage loan is $2,450 per month. The monthly payment is required for 30 years, or until you sell your home to pay off the mortgage loan.

B. How much did you pay in interest to the lender? (total paid - original $400,000 loan)
a. $50,000
b. $100,000
c. $150,000
d. $200,000

User Ajmajmajma
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1 Answer

4 votes

Final answer:

To calculate the total interest paid on a $400,000 30-year mortgage with a monthly payment of $2,450, multiply the monthly payment by the total number of payments (360) to get $882,000, then subtract the original loan amount. The total interest paid comes to $482,000, which is not listed in the provided options.

Step-by-step explanation:

To determine how much you paid in interest for a $400,000 30-year mortgage loan with a monthly payment of $2,450, you first need to calculate the total amount paid over the 30 years. The calculation is as follows:

Total payments over 30 years = monthly payment * number of months

= $2,450 * (30 years * 12 months/year)

= $2,450 * 360

= $882,000.

Now, subtract the original loan amount from the total payments to find the total interest paid:

Total interest paid = total payments - original loan amount

= $882,000 - $400,000

= $482,000.

Therefore, the total interest paid to the lender is $482,000, which is not one of the answer choices provided. Perhaps there is an error in the options, as none of them match the calculated interest paid.

User Trcx
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8.3k points