Final answer:
John's monthly mortgage is approximately $576.13 and he will pay approximately $151,316.56 in interest alone over the course of paying for the house.
Step-by-step explanation:
To calculate John's monthly mortgage, we will first find the loan amount by subtracting the down payment from the negotiated price of the house:
Loan Amount = House Price - Down Payment
Loan Amount = $148,097 - $20,000
Loan Amount = $128,097
Next, we will use the loan amount, the interest rate (3.00% APR), and the loan term (22 years) to calculate the monthly mortgage using the formula for monthly mortgage payment:
Monthly Mortgage = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Loan Term))
Let's plug in the values:
Monthly Interest Rate = (3.00% / 100) / 12
Monthly Mortgage = ($128,097 * 0.0025) / (1 - (1 + 0.0025)^(-22))
Using a mortgage calculator, we find that John's monthly mortgage is approximately $576.13.
To calculate the total interest paid over the course of paying for the house, we will multiply the monthly mortgage by the total number of months:
Total Interest = Monthly Mortgage * (Loan Term * 12)
Total Interest = $576.13 * (22 * 12)
We find that John will pay approximately $151,316.56 in interest alone.